Inflation Control and Financial Facilities Strategy
Strategy to Spur Recovery Through Fiscal Policies
Q3 2020 is the key to avoid a recession;
Optimizing the role of government is important to stimulate the economy
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1
PEN PROGRAM
EXECUTION &
ACCELERATION
The existing program that already has
State Budget Allocation (DIPA) needs
to be accelerated and the accuracy of
targeting continues to be improved at
the next stage of distribution
The new program that data and
delivery mechanism are available will
be executed.
New proposed programs that are not
supported by valid data, and require
complex regulatory changes, should
be diverted to existing implemented
programs
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STRENGTHENING
GOVERNMENT
CONSUMPTION (G)
Personnel spending as an instrument
to encourage growth:
Accelerated disbursement of
salaries 13
Acceleration spending to support
new work patterns (WFH, WFS)
Reallocation to support the
digitalization of the bureaucracy;
Shifting capex that is difficult to
execute to a faster disbursement
(aim to support the infrastructure
for digitalizing public services).
Relaxation of goods and services
procurement policies
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3
STRENGTHENING THE
CONSUMPTION (C)
STRATEGY → Accelerate social
assistance spending
Modification of social protection
spending THROUGH several options:
increasing the amount and
frequency, and extending period.
This can be done through the
addition of a social protection
program index that is relatively
implementable (PKH, Basic Food Aid,
Cash Transfer etc.)
Source: Ministry of Finance
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