Indonesia’s budget for controlling the impacts of the novel coronavirus (Covid-19) is very small compared to developed countries, so its effectiveness must to be ensured.
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Indonesia’s budget for controlling the impacts of the novel coronavirus (Covid-19) is very small compared to developed countries, so its effectiveness must to be ensured.
The government’s has allocated just Rp 10.3 trillion (US$700 million) of the state budget to the stimulus package, including fiscal incentives, local government grants, and social security. It is preparing a second fiscal incentive.
This is very small compared to those in other countries. China allocated 110.48 billion yuan ($16 billion) on 4 March 2020, while Japan has allocated an additional 5 trillion yen ($47 billion) to alleviate the impacts of Covid-19. South Korea and Singapore have respectively allocated $9.9 billion and $4.06 billion to support healthcare, businesses, households.
Indonesia\'s small budget will be effective only if it is disbursed on time and its spending is on target. Therefore, the issuance of the Home Ministry’s circular to all regional governments is the right step to take in order to manage and accelerate the disbursement of the funds to combat Covid-19 and all related impacts that could slow growth.
Presidential Instruction No. 4/2019 on capacity building in the prevention, detection and response to outbreaks of disease, global pandemic, and nuclear, biological and chemical emergencies also mandates governors, regents and mayors to mobilize all resources under their authority in the fulfillment of all duties, integrate them into regional development programs, and allocate a sufficient budget in the effort to prevent, detect and respond quickly to diseases that constitute a public health emergency.
We hope that this small budget will be directed towards activities that will have a direct effect on the public, such as improving level one healthcare facilities and referral hospitals in areas vulnerable to the risk of ed. The government has issued an infectious disease prevention and control (IPC) protocol to manage Covid-19, from screening suspected cases, to transporting cases to a referral hospital and sample collection, and to isolation and treatment. Without funding support, the protocol would be useless.
Likewise, the protocol should also be implemented in education, for example to improve environmental hygiene at schools, and Covid-19 IPC protocols should also be implemented at all ports of entry in the regions including airports, seaports, and land-based border crossings. No less important is the public communications protocol. In this era of information technology, far-reaching and widespread communication is vital to overcoming information bias.
The current budget should be really used to drive the people\'s economy. The accelerated budget disbursement should not be misused for non-urgent activities or used as “gifts” to attract voters ahead of the regional elections. With sincerity and cohesiveness, this small budget can be an important resource for the nation in facing Covid-19.