Indonesia Raises 2021 Budget for National Economic Recovery Programme to IDR 688.33 Trillion: Finance Ministry

Indonesia’s Finance Minister, Sri Mulyani Indrawati, has further increased the 2021 budget for the country’s National Economic Recovery (PEN) programme, which includes the mass vaccination programme, to IDR 688.33 trillion. This is up from the budget of IDR 619 trillion stated earlier in January 2021 and the original budget of IDR 372.3 trillion estimated for 2021.

Why it matters?

Although Indrawati did not discuss the impact of the PEN increase on the Government of Indonesia’s budget deficit plan, it was noted that the Finance Ministry estimated the budget deficit to remain at 5.7% of GDP as previously estimated, assuming a maximum budget deficit of IDR 627.9 trillion.

An official from the Finance Ministry stated that the...