Government Measures to Mitigate Covid-19 Risk

THE 2020 SOCIAL PROTECTION PROGRAM IS ESCALATED TO MITIGATE THE NEGATIVE IMPACT OF COVID-19 PANDEMIC Ministry of Finance estimation shows that Social Protection is able to maintain the consumption of the poor and vulnerable groups Simulation of Changes in Household Expenditure Due to Covid-19 and Social Protection 15% 10.9% 10% 7.8% 6.8% 5.9% 4.0% 5.1% 5% 2.3% 1.9% 1.5% 0.1% 1.2% -1.4% -1.9% -2.5% 0.7% 3.0% 0% -5.5% -6.2% -6.5% -6.5% -5% -3.6% -10% -6.8% -7.7% -8.2% -7.8% -7.6% -7.8% -8.1% -8.1% -7.6% -15% 10% Poores 2 3 4 5 6 7 8 9 10% Richest 10% ■Changes in spending due to Social Assistance Changes in spending due to Covid-19 ⚫Net Changes in Household spending The poor and vulnerable people (the poorest 50%) have the most benefits. The Social Protection (Perlinsos) program reaches up to the affected middle class population (for example, wage assistance, pre- employment cards, and internet quota subsidies) ■ Without the PEN program, poverty is expected to escalate even further by 2020 ■ The middle and rich classes (group of 10% to 6th and above) tend to hold back consumption, due to limited mobility. Third Party Funds (DPK) in banking grew to reach 10.9% Source: BKF calculations, for the realization of various 2020 Perlinsos programs Note: a) simulations are carried out on the growth of nominal household consumption in 2020 using Susenas 2019. b) distribution of the Perlinsos Program is carried out based on beneficiaries in Susenas Realization of PEN & Social Protection PROGRAM PKH 10 mio Beneficiaries Jabodetabek Food Aid 2,2 mio Beneficiaries Non Jabodetabek Cash Social Assistance 9,2 mio Beneficiaries Sembako Card 19,4 mio Benficiaries Wage Assistance 12.4 mio employees Village Fund Cash Direct Assistance 8 mio penerima Non PKH Basic Food Cash Assistance 9 mio Beneficiaries Wage Subsidy Assistance for non-permanent teachers 2,6 mio teachers Pre Employment Card 5,6 mio beneficiaries PKH Participants Rice Aid 10 mio Beneficiaries Internet Quota Subsidy 51 Juta Beneficiaries Electricity Discount 32,1 mio households 68

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