Government Measures to Mitigate Covid-19 Risk
STATE BUDGET IS CRUCIAL TO CONTAIN THE IMPACT OF COVID-19
State Budget plays critical role as countercyclical instrument in avoiding the deeper economic
contraction
Indonesia Economic Growth (%, yoy)
State Budget Continue To Strive in 2021
2017
2018 2019
5.1 5.2
State Budget
2021
5.0
5.0
2020
Realization
(interim)
2021 Allocation
(as of Feb 22
2021)
Growth
(%)
Q1 2020
State Budget
Rp2,589.9 T
Rp2,750.0 T
6.2
2.97
Covid-19
National Economic Recovery
Program (PEN)
Rp579.8 T
Rp699.43 T
20.6
Pandemic
Health
Rp63.5 T
Rp176.3 T
177.6
Q4 2020
-2.19
Social Protection
Rp 220.4 T
Rp157.4 T
-28.6
MSMEs Support &
Rp 173.2 T
Rp186.8 T
7.9
Corporation Financing
Q2 2020
-5.32
Q3 2020
-3.49
Business Incentives
Priority Program
Rp 56.1 T
Rp 66.6 T
Rp53.9 T
Rp125.1 T
-3.9
87.8
Deficit (% to GDP)
6.09%
5.70%
State Budget & PEN
Through the widening of the 2020 state budget deficit to 6.1% of GDP, the
realization of state expenditure of IDR 2,589.9 trillion, including the
realization of PEN, IDR 579.8 trillion government role prevent a deeper
economic contraction due to the 2020 pandemic.
In 2021, state budget and fiscal policy will continue its role as a srive to
support national economic recovery
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