Reallocated Budget from New Capital to Covid-19 Demanded to Meet Crucial Targets

28-04-2020 / KOMISI XI

Member of Commission XI (Finance, National Development Planning, and Banking) of the House, Anis Byarwati, appreciates the Finance Minister’s plan to shift the budget from preliminary construction work of the new capital city, which is under the authority of the Public Works and Housing Ministry, to mitigation measures to contain COVID-19 pandemic. Since early this month, Byarwati has voiced her idea of delaying the preliminary construction work so that the government can focus on the handling of COVID-19. 


Quoting the statement of Finance Minister on the Public Works and Housing Ministry’s budget reallocation, she explained that the budget reallocation was intended for not only basic infrastructure of the new capital city but also construction of a hospital in Galang Island, Riau Islands Province for COVID-19 emergency measures as the Ministry had reallocated its capital expenditure to be spent on it. Some of the Ministry’s Rp. 120 trillion total budget on capital expenditure has already been reallocated. 


“This is what I would like to convey last week, delay the capital relocation agenda, immediately withdraw Omnibus Bill on Job Creation. Use the budget for COVID-19 mitigation measure and economic recovery to save people,” said the Member of House from the Prosperous Justice Party in her written statement to Parlementaria, Tuesday (28/4/2020). 


According to Byarwati the Rp. 89. 472 trillion rupiah from the State Budget was needed for the relocation of the new capital city but such amount must be more meaningful if relocated to handle COVID-19 pandemic that had created enormous impact to many people. “The 89.4 rupiah trillion-fund will be very significant to create programs that can increase people’s purchasing power,” she said. 


However, related to the issue of budget reallocation policy for new capital city raised by the Finance Minister, Byarwati gave a special note. “The budget reallocation must meet the right targets. The impact of large budget reallocation must be felt and enjoyed by public at large,” the Jakarta legislator reminded.  


She called on the government to formulate good and detailed plan and systems to ensure the relief assistance reached those hit hard by the pandemic as prescribed by the prevailing laws and regulations. “The government must ensure that the relief is evenly distributed to the needy and those who are economically affected,” Byarwati concluded.  

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