Jokowi: Prioritizing People\'s Health and Purchasing Power

ANTARA/ HAFIDZ MUBARAK A

President Joko “Jokowi” Widodo prepares to make a press statement related to COVID-19 at the Bogor Palace in West Java on Monday (16/3/2020). President Jokowi asked the heads of regional governments to communicate with agencies of the central government, such as the COVID-19 Task Force and ministries, for making major policies related to the handling of COVID-19 outbreak and emphasized that lockdowns should not be carried out by local governments.

President Jokowi has ordered all ministries, state institutions and local governments to cut down non-priority spending and divert the money for the handling of Covid-19 and social safety net programs.

JAKARTA, KOMPAS— President Joko “Jokowi” Widodo has asked all ministries, state institutions, and all local governments to focus the spending mainly on the improvement of public health services and the people\'s purchasing power. For this reason, non-priority spending must be reallocated for Covid-19 and social assistance programs.

The instruction was made by the President during teleconferenced limited Cabinet meeting at the Bogor Palace, West Java on Friday (03/20/2020). A number of ministers and heads of state institutions were linked to the conference from their respective offices. The meeting discussed monetary and fiscal policy in coping with the spread of Covid-19.

In his opening remarks, the President said that the spread of Covid-19 not only threatened the public health, but also had major implications for the world economy. The world economic growth which was initially projected at 3 percent is projected to fall to 1.5 percent or lower. The domestic economic growth which was initially projected to be 5-5.4 percent will also be corrected down.

These challenges, according to the President, must be faced together including through fiscal and monetary policies. In the fiscal sector, the President also asked all ministries, institutions and local governments to focus the budget on the handling of Covid-19, on the strengthening of social safety nets, and on the provision of economic incentives for the business sector.

Kompas/Wawan H Prabowo

A spokesman for the handling of the coronavirus outbreak, Achmad Yurianto, gives a statement on the development of coronavirus cases in Indonesia and the world at the Presidential Palace complex in Jakarta on Wednesday (11/3/2020).

"Therefore, I instruct all ministers and regional governments to cut down expenditure on programs that are not prioritized. There are a lot of programs which are not priorities, cut them. Budgets for business trips, shopping meetings, purchasing goods that are not priority, I ask, must be cut," said the President.

The reallocation of expenditure for the handling of Covid-19, the President said, is the most important. Next is to strengthen the social safety net program. It means that direct assistance programs for the needy people must be optimized, such as the Family Hope Program, the Healthy Indonesia Card, the Smart Indonesia Card, the Basic Food Card, and the Pre-employment Card.

"Everything will be implemented as soon as possible," the President said.

The village funds, the President added, must also be distributed immediately. To all relevant stakeholders from the center to the village, the President requested that the village funds to be used for labor intensive projects which can provide employment for the people and for the handling of the Covid-19.

The President also instructed all ministries and state institutions to strengthen or initiate “cash-intensive programs” (projects which can provide employment to people).

"The purchasing power of the people should become our main concern, especially the ‘small’ people. Use the budget for such a purpose," said the President.

KOMPAS/TOTOK WIJAYANTO

A teller prepares US dollars at the Plaza Mandiri branch office, Jakarta, Monday (20/8/2018).

Still in the fiscal sector, the President asked for the reallocation of central and regional expenditure budgets to provide economic incentives for businesses. The incentives should be given to micro, small and medium enterprises (MSMEs) as well as the informal sector.

In the monetary sector, the President said that he had held talks with Finance Minister Sri Mulyani Indrawati, Bank Indonesia (BI) Governor Perry Warjiyo, the chairman of the Financial Services Authority (OJK), Wimboh Santoso, and the chairman of the Deposit Insurance Corporation, Halim Alamsyah. The President asked the leaders of the four financial leaders to work together.

"Ensure availability of domestic liquidity, monitor the financial system at all times, and mitigate risk as comprehensively and as thoroughly as possible," the President said.

The President hopes that BI will continue to focus on maintaining the stability of the rupiah exchange rate and inflation so that the monetary secto can be controlled while accelerating the enactment of regulations on the use of rupiah in the country.

The President hopes that BI will continue to focus on maintaining the stability of the rupiah exchange rate and inflation so that the monetary secto can be controlled while accelerating the enactment of regulations on the use of rupiah in the country. The President also hoped that OJK would focus on providing economic stimulus policies that provide convenience and relief to affected groups, especially MSMEs and the informal sector, so that production will continue and layoffs of the workers can be avoided.

"I have received a report that the OJK has issued a stimulus policy to bank borrowers, including MSMEs. I think the credit restructuring policy is very good. I want this policy can be evaluated periodically to see the needs on the ground, "said the President.

KOMPAS/HARIS FIRDAUS

A drone is used to disinfect areas in Malioboro, Yogyakarta city, Friday (20/3/2020). The disinfectant spraying was carried out to help curb the spread of COVID-19.

Finally, the President requested that the subsidized credit for small businesses (KURs) must be further increased and be given to as many recipients as possible.. "I ask for support from all business associations, trade unions, labor unions, fishermen associations, and farmers, to jointly work together to face the current and future economic challenges," the President said.