JAKARTA– The National Economic Recovery and Transformation Task Force (Satgas PEN) continues to accelerate the realization of the national economic recovery program (Pemulihan Ekonomi Nasional – PEN) in the fourth quarter of 2020 to ease the economic burden of the community and become a stimulus for national economic movements during the Covid-19 pandemic. The PEN Task Force targets to increase the budget absorption of at least IDR 100 trillion in Kuartal IV/2020 to boost national economic growth.
Cumulatively, the realization of the PEN budget up to October 19, 2020 has reached IDR 344.43 trillion or almost 50% (to be precise 49.5%) of the total budget of IDR 695.2 trillion. Especially for the four sectors that are the main focus of the PEN Task Force, namely Social Protection, UMKM Support, Sectoral Ministries/Institutions and Local Governments (K/L/D, and Corporate Financing, the realization of budget absorption has reached IDR 286.93 trillion as of October 19, 2020.
Of the 4 clusters that are the focus of the PEN program, the Social Protection sector and the MSME sector are the two sectors with the highest realization progress, the Ministry/Institution and Local Government (K/L/D) sectors are relatively lower in realization, while the Corporate Financing sector is still finalizing program.
“The K/L/D sector is a sector with a relatively lower realization compared to the realization of other sectors, so we really appreciate the initiative of the Ministry of Tourism and Creative Economy which has started the implementation of the national economic recovery program in the tourism sector, which we all know is one of the sectors most affected by Covid-19,” said Head of the PEN Task Force, Budi Gunadi Sadikin at a press conference at the Presidential Palace in Jakarta, Wednesday (21/10), which also presented the Minister of Tourism and Creative Economy, Wishnutama Kusubandio.
The latest program that is ready to be implemented by the Ministry of Tourism and Creative Economy is the Tourism Grant Fund worth IDR 3.3 Trillion in order to reduce the impact of Covid-19 and efforts to maintain economic sustainability, especially in the tourism sector.
“The Tourism Grant Fund is part of the National Economic Recovery Program (PEN) to assist the Regional Government (Pemda) and the Hotel and Restaurant Industry which is currently experiencing a decline in Regional Original Income (PAD) and financial disruption due to the Covid-19 pandemic,” Wishnutama said.
In addition, the Tourism Grants Fund is also expected to help the tourism industry to improve the readiness of destinations in the better implementation of the Cleanliness, Health, Safety and Environmental Sustainability (CHSE) health protocol. “This is the first step in recovery in order to increase the trust of tourists to visit tourist destinations because the implementation of good health protocols is the key to the success of the tourism sector so that it can rise faster,” added Wishnutama.
Tourism Grants are cash grants through a transfer mechanism to the regions aimed at local governments as well as hotel and restaurant businesses in 101 districts/cities based on several criteria, namely the capital city of 34 Provinces, which are in 10 Priority Tourism Destinations (DPP) and 5 Super Priority Destinations (DSP), areas that include 100 Calendar of Events (COE), branding destinations, as well as areas with revenues from Hotel Tax and Restaurant Tax (PHPR) of at least 15 percent of the total PAD for the 2019 fiscal year. It will be hold until December 2020.
“Currently, the criteria for regions, hotels and restaurants that will be included in the Tourism Grant Program have been determined. This includes the mechanism and conditions for its distribution. The target is that local governments that are affected by the economy, especially in the tourism sector, especially the hotel and restaurant industry, can revive tourism activities,” Wishnutama explained.
Apart from the Tourism Grant Fund, the Ministry of Tourism and Creative Economy/Baparekraf is also working with other Ministries and Institutions to prepare various supports for the tourism industry, including restructuring of banking/non-banking obligations, UKM & Cooperative credit guarantee program, state money placement program at Bank Himbara and BPD Bank, tax relaxation for taxpayers affected by the Covid-19 pandemic, subsidies for free fixed electricity costs, regional loans through PT Sarana Multi Infrastruktur, BLT for formal workers through BPJS and also BLT for Micro and Small Enterprises.
“With the 2020 Tourism Grant, it is hoped that it can help increase the implementation of the CHSE Protocol in destinations so as to create a sense of security and comfort for tourists while helping the tourism industry to survive. In the future, the government will continue to issue policies to help the tourism sector bounce back,” said Wishnutama.
In terms of absorption of the PEN budget, the Health sector reached Rp.27.82 trillion or 31.78% of the Rp.87.55 trillion budget ceiling, the Business Incentive sector reached Rp.29.68 trillion or 24.61% of the Rp.29.68 trillion budget ceiling. Social Protection sector reached IDR 167.08 trillion or 81.94% of the budget ceiling of IDR 203.90 trillion, MSME sector reached IDR 91.84 trillion or 74.39% of the budget allocation IDR 123.46 trillion, sector K/L/D reaching IDR 28.00 trillion or 26.39% of the budget allocation of IDR 106.11 trillion, and the Corporate Financing sector with a budget allocation of IDR 53.6 trillion is still finalizing the program.
Anang Fadhilah
