February 01, 2021 | Invest Indonesia

Govt’s economic recovery strategy hinges on vaccination, budget

Source from: Antara News

Original News HERE

Coordinating Minister for Economic Affairs, Airlangga Hartarto, revealed the government’s strategy for driving economic revival in 2021-2022 will cover immunization, expansion of credit to small businesses, and increased allocation for the economic recovery program.

“We are optimistic about (our prospects) in 2021-2022,” he said during a webinar of the trustee council of the University of Indonesia here on Wednesday.

The government’s economic recovery strategy includes the vaccination policy that has kicked off and will be expedited in stages this year, he stated.

In the first two months of 2021, the government will complete the vaccination of medical workers, he informed.

In addition, the government will increase the allocation of smallholder business credit (KUR) to Rp253 trillion for small and medium enterprises. In 2020, the realization of KUR reached 100 percent of the total allocation of Rp190 trillion, he pointed out.

The government is still providing a three-percent interest subsidy on credit of up to Rp100 million and a 1.5-percent interest subsidy on loans of Rp500 million to Rp10 billion with a six month tenure, he informed.

He said the government will continue the national economic recovery program in 2021 by raising the budgetary allocations to Rp553 trillion. It will set aside Rp104.7 trillion for the health sector, Rp150.9 trillion for social protection, Rp141.3 trillion for regional governments and ministries/government institutions, and Rp156 trillion for corporate financing, he noted.

The budget allocations for national economic recovery will hopefully push the purchasing power of the people, both middle to upper classes and middle to lower classes, he said.

The implementation of the Job Creation Law and 52 derivative regulations in the form of government and presidential regulations is also expected to boost economic recovery, he added.

“Almost all the government regulations and presidential regulations have substantially been completed. Hopefully, the President will sign them in a week,” he said.

Reporter: Dewa Ketut SW/Suharto
Editor: Fardah Assegaf, Ine