State Revenues Decline 9 Percent and Deficit Rp. 1,000 Trillion

The COVID-19 pandemic spread rapidly and continues to spread. Not only health problems, this pandemic has a domino effect on social, economic and political aspects. The government must work hard so that it can make the right policies, implement them quickly and still maintain the accountability of institutions. "At present consumption is disrupted, investment is hampered and exports and imports contract. This has stalled the economy. This is the traffic jam that we are trying to solve. This requires intensive and fast collaboration with various parties, "said Sri Mulyani, Minister of Finance of the Republic of Indonesia in a Business Talk event organized by the School of Business, IPB University. (27/6).

Sri Mulyani further stated that state revenues had fallen nine percent and. a deficit of more than Rp 1,000 trillion. Economic slowdown occurred in all components due to the decline in economic activity during the Large-Scale Social Restrictions (PSBB). The government handles this problem by optimizing the policy mix by relocating the budget and economic stimulus programs.

According to him, the government has tried its best with various measures. Such as providing credit and financing leeway for Micro, Small and Medium Enterprises (MSMEs), lowering the Bank Indonesia benchmark interest rate and providing hygienic money. The government also tried to maintain accountability and transparency during the pandemic. "The total cost spent to handle a pandemic is 695.2 trillion rupiah. In general, the COVD-19 handling program faces challenges in execution in terms of regulation, administration and implementation. Every day we need to coordinate with other parties involved so that communication is maintained, "Sri Mulyani added.

Meanwhile Perry Warjiyo, Governor of Bank Indonesia revealed that the coordination of policies in national economic recovery was going well. The government has been working quickly to deal with a pandemic. However, the speed of response must be balanced with accountability and transparency so as not to cause problems later.

"The credibility of the government must be maintained by providing a quick response to making policies coupled with accountability and effectiveness of implementation. Every decision must be based on clear regulations and data. Pandemic is not a reason for maladministration, "said Perry Warjiyo.

The final speaker was Dr. Agus Joko Pramono, Deputy Chairperson of the Indonesian Financial Supervisory Agency (BPK). According to him, BPK has identified and mitigated risks related to the government's rapid response in making regulations facing COVID-19. This mitigation is carried out both for operational activities, fraud and integrity, financial and compliance issues.

"There is an increased risk of fraud due to abuse of authority and moral hazard that harms the government. In addition, we also maintain data validity and program alignment between government agencies. Pandemic is not a reason for not complying with laws and regulations, "concluded Dr Agus.

Finally, the presentation from the Rector of IPB University, Prof. Dr. Arif Satria revealed that every policy and action must be based on science. Every crisis always requires new leaps and ideas. This must be strengthened on the basis of science and technology.

"IPB University has as much as possible contributed to handling COVID-19. We are ready to continue to collaborate with various parties, especially in handling food issues. Various attempts have been made. Like making an application for handling COVID-19, researching data and opening a virus checking laboratory, "said Prof. Arif. (IAAS / NAS) 



Published Date : 29-Jun-2020

Resource Person : Sri Mulyani

Keyword : Accountability, Handling COVID-19, IPB University Business School, Ministry of Finance, Bank Indonesia, BPK