state budget 2021

https://fiskal.kemenkeu.go.id/informasi-publik/investor-relation-unit

[email protected]

Should you have further questions, please do not hesitate to contact us:

STATE BUDGET 2021


[email protected]


For further queries please send an email to [email protected]

Poverty level

9.2 – 9.7%

Unemployment Rate

7.7 – 9.1%

GINI Ratio

0.377 – 0.379

HDI

72.78-72.95

Growth:

5.0%

Inflation:

3.0%

Exchange rates:

Rp14.600/USD

10-year Gov’t Bond: 7.29%

ICP (Oil Price):

US$45 per barel

Oil Lifting:

705 thousand barrel/day

Gas Lifting:

1.007 thousand barrel (equal oil per day)

DEVELOPMENT TARGET

2021 BUDGET MACROECONOMIC ASSUMPTION AND

DEVELOPMENT TARGET

MACROECONOMIC ASSUMP.


(in IDR trillion)

2020 2021

Pres. Decree

72/2020 RAPBN APBN

A. State Revenue 1,699.9 1,776.4 1,743.6 I. Domestic Revenue 1,698.6 1,775.5 1,742.7

1. Tax Revenue 1,404.5 1,481.9 1,444.5 2. Non-Tax Revenue 294.1 293.5 298.2

II. Grant 1.3 0.9 0.9 B. State Expenditure 2,739.2 2,747.5 2,750.0

I. Central Government Expenditure 1,975.2 1,951.3 1,954.5 1. Line Ministries 836.4 1,029.9 1,032.0 2. Non Line Ministries 1,138.9 921.4 922.6

II. Regional Transfer and Village Fund 763.9 796.3 795.5 1. Regional Transfer 692.7 724.3 723.5 2. Village Fund 71.2 72.0 72.0

C. Primary Balance (700.4) (597.9) (633.1)D. Surplus/(Deficit) (1,039.2) (971.2) (1,006.4)

% to GDP (6.3) (5.5) 5.7 E. Financing 1,039.2 971.2 1,006.4

2021 BUDGET STRUCTUREBudget is still expanded to the deficit level of 5.7% to GDP to support economic recovery acceleration


98,5

-308

,3

-34

1

-269

,4

-348

,7

-103

9,2

-100

6,4

-142

,5

-125

,6

-124

,4

-11,

5

-73,

1

-700

,4

-633

,1

-7

-6

-5

-4

-3

-2

-1

0

2015 2016 2017 2018 2019

2020Pres.

Decree72/20

2021Budget

-1200

-1000

-800

-600

-400

-200

0

Budget Deficit (IDR) Primary Balance Budget Deficit (% of GDP) - RHS

•Cutting the red tape to accelerate national economic recovery

• Improve public services to optimize non-tax revenue

•Continuing social safety net to lay a solid foundation of inclusive economic recovery

•Support programs /activities for impacted sectors (e.g. Tourism)

•Expanding access to capital for MSMEs and cooperatives through interest subsidy

•Support the restructuring of SOEs, PSA, Sovereign Wealth Fund (SWF)

• Increase access to financing for MSMEs and housing for low-income household

•Continue to support higher education,, research and cultural activities

•Supporting national economic recovery by providing tax incentives selectively and measurably

State Revenue

Expenditure

Financing

BUDGET DEFICIT IS TARGETTED AT 5.7%Budget is still expanded to the deficit level of 5.7% to GDP to support economic recovery acceleration

Budget Deficit


BASED ON THE LATEST REALIZATION, TAX REVENUE IN 2021 IS PROJECTED TO GROW BY 2.9% WITH THE POLICIES ARE FOCUSED ON SUPPORTING ECONOMIC RECOVERY AND TAX REFORMS

1.240,4 1.285,0

1.343,6

1.518,8 1.546,1

1.404,5 1.444,5

8,2

3,6 4,6

13,0

1,8

(9,2)

2,9

2015 2016 2017 2018 2019 2020* 2021

Growth

Tax Revenue(in IDR Trillion) Tax Policy to Support National Economic Recovery

and Economic Transformation

Tax Revenue Optimization and Reform Policy

Providing selective and measurable tax incentives

Supporting Human Capital Development

Strengthening strategic sectors

To support impacted sectors, cutting the red tape, and adjusting the

import duty

Providing incentives for vocational education and R&D activities to improve

the quality of human resources

the Omnibus Law on Taxation and user friendly

IT-based service

• Optimizing revenue through expanding the tax base• Strengthening supervision and law enforcement• Continuing tax reforms covering the areas of organizational arrangement,

human resources, IT and database, business processes, and tax regulations

• Extending excisable goods

6


64,9 111,1 180,6 154,9 79,1 104,1

197,1

200,1

228,7

254,1

215,1 194,1

26

1.9

31

1,2

40

9,3

40

9,0

29

4,1

29

8.2

2,5

18,8

31,5

(0,1)

(28,1)

1,4

2016 2017 2018 2019 2020 2021BudgetPres. Decree

72/20

Non Tax -Nat.Resource

Non Tax -Nat.Resource

Total Non Tax Revenue

Gro

wth

• Non-tax revenue coming from Oil and Gas and other natural resources follow global commodity price movement and its production (lifting)

• Government’s effort in optimizing oil and gas lifting includes the improvement of Oil and Gas investment climate and controlling Cost Recovery

• Receipt of State Assets Separated from SOEs dividends is affected by the decline in profits in 2020 due to the impact of Covid-19 pandemic

• Non Tax Revenue from line ministries as well as Public Service Agency is expected to be more optimal in line with the recovery of economic activities.

• Completion of regulations in the non-tax revenue related

(in Trillion IDR)

2021 NON-TAX REVENUE IS PROJECTED TO GRADUALLY IMPROVE, ALIGNED WITH THE GLOBAL AS WELL AS NATIONAL ECONOMIC RECOVERY


2021 MAIN EXPENDITURE POLICIES

04

EFFICIENCY

Through sharpening operational costs adapting with the new normal condition

Focus on improving the quality of health, education, ICT, infrastructure, food (agriculture and fisheries), tourism and social protection

To improve the quality of public services in government administration and service delivery.

Employing the spending better approach focusing on implementable priority programs, result-based, and efficient as well as anticipating a future potential shock

684,2 765,1 846,6 873,4 836,4 1.032,0

469,8 500,2 608,8 622,9 1.138,9 922,6

(2,5)9,6 15,0

2,8

32,0

(1,0)

2016 2017 2018 2019 Perpres72/2020

APBN2021

Continuing the fiscal expansion by focusing on

economic recovery caused by the pandemic as well

as strengthening reforms to escape from the middle

income trap

Line Ministries Spending

Non-Line Ministries Spending

Growth


LINE MINISTRIES (K/L) EXPENDITURE WILL GROW AT 23,4%Focus on supporting the acceleration of socio-economic recovery through spending reform and increase effectivity

Material ExpenditureContinuously improving efficiency to support the ability of the bureaucracy to adapt to a rapidly changing environment like WFH, open working space, and IT support

Personnel ExpenditureBureaucratic Reform to encourage agile, effective, productive, and competitive bureaucracy and public services

Capital Expenditure

Social Assistance Expenditure Continue the existing social assistance program, namely PKH, PI, Kartu Sembako, and PBI JKN. Also expanding the beneficiaries

Developing basic infrastructure for equitable development and connectivity improvements. Also supporting the digitalization on strategic sectors that accelerate economic recovery

26,9

(6,5)

11,8 10,7 3,2

(4,2)

23,4

732,1 684,2 765,1 846,6 873,4 836,4 1032

2015 2016 2017 2018 2019 Perpres72/2020

2021

Growth (%,yoy)K/L Expenditure (Tr IDR)


TOP 10 LINE MINISTRIES BUDGET ALLOCATIONFocus to support socio-economic recovery and strengthening reforms

Real 2019

Perpres72/2020

2021 Budget

Ministry of Public Works and Public Housing

100.6 75.6 149.8

Ministry of Defense

115.4 117.9 137.3

Indonesian Police Offricers

98.2 92.6 112.1

Ministry of Social Affairs

57.7 104.4 92.8

Ministry of Health

67.3 78.5 84.3

Real 2019

Perpres72/2020

2021 Budget

Ministry of Education

36.5 70.7* 81.5

Ministry of Religious Affairs

63.9 62.4 67.0

Ministry of Transportation

39.7 32.7 45.7

Ministry of Finance**

39.5 39.0 43.3

Ministry of Agriculture

19.4 14.0 21.8

* reallocation on higher education budget from Ministry of Research, Technology, and Higher Education to Ministry of Education

** include Public Service Agency (BLU) namely BLU Oil Palm Plantation, Indonesia Endowment Fund for Education/LPDP (2019: IDR 13.8 T; 2020: IDR 15.2 T; 2021: IDR8.5 T)

IDR TrillionIDR Trillion


92,8 92,2 109 113,6 212,5 169,7

2016 2017 2018 2019 Perpres72/2020

2021

33,8

(0,6)18,3

4,2

87,0

(20,1)

11

HEALTH EXPENDITURE COVERS 6,2% OF BUDGET ALLOCATIONDirected to accelerate post-pandemic health recovery, as well as increasing access

and quality of health services through the health care system improvement

Accelerating post-pandemic recoveryIncreasing and equitable supply side; strengthening coordination between central, regional and private sector. Also anticipation for vaccine procurement

Human Development Health ProgramInclude program to reduce stunting in children

Reform on JKN Improvement on quality of service and effectiveness; data validation; and strengthening the role of local governments

Health Security PreparednessBuild integrated health system for better prevention, detection and response of potential disease

Growth (%,yoy)Health Expenditure (IDR Tr)


HEALTH EXPENDITURE PRIORITIESMainly to tackle the pandemic and strengthening of the national health system

IDR 18.0 T for 160 million dosage

Anticipation for Covid-19 Vaccine Procurement

IDR 3.7 T for 160 million dosage

Anticipation for Vaccination Program

IDR 2.4 T for PBPU & BP kelas III

IDR 48.8 T for PBI JKN 96.8 million people

JKN Contribution

IDR 10.7 T for 10,143 Puskesmas

Health Care Operational Cost

IDR 2.77 T for 24 package

Medicine for TB, HIV/AIDS and other vaccine

IDR 1.1 T for Health Ministry &

IDR 0.1 T for BPOM

PCR Test, Lab, and Litbang

IDR 2.8 T for 145 services

Tuberculosis Health Program

IDR 1.1 T for 238,000 pregnant women & 441,000 children

Nutrition for Pregnant Women and Children

971 Puskesmas and 559 Hospital Rujukan

Health Care Infrastructures


EDUCATION SPENDING Directed to improve the quality of education, through increasing PISA scores,

strengthening basic education as well as teacher competence

370,8 406,1 431,7 460,3 547,8 550

2016 2017 2018 2019 Perpres72/2020

2021

(5,0)

9,5 6,3 6,8

19,0

0,4

Growth (%,yoy)Education Expenditure (IDR Tr)

IDR184,6TCENTRAL GOVERNMENT

SPENDING

IDR299,1TTRANSFER TO REGION

Disbursement through Line Ministries and BA BUN, aimed to continue the priority program that focuses on the improvement of the quality of Indonesian human resources

To provide accessible and equitable education, improving teacher welfare and IT support. Also, to support the digitalization on education


Teacher Leader ProgramThe best teachers who join the program can be appointed as school principals, instructors, or teacher leaders.

School Operational Assistance Application (BOS Marketplace)

Transformation of Teacher Professional Education(PPG) Completion of teacher certification in 2021, PPG in department, & PPG Pre Department

School Leaderas a catalyst for the transformation of the school into a teacher training center & a catalyst for other schools

CurriculumSimplificationMinimum Competency Assessment for vocational school and new curriculum implementation

Personalization and learning segmentation

Minimum Competency Assessment(AKM) based on PISA measurements, AKM support in the form of ICT assistance to schools, AKM guidance to schools.

Character Surveymeasure student learning outcomes that are affective & motivational

Learning EnvironmentSurvey

Involvement of Mobilizing Organizations in increasing teacher competence

Independency of University: PTN / PTS autonomy to open new

study programs, & the ease of becoming a PTN BH

Alternative financing for public university Operational Cost for University (BOTN) based on Key Performance (IKU) dan Competitive Fund

Company Participation for education and technology

EDUCATION REFORM AND OTHER EDUCATION POLICIES

Transformation of

education and training

for teachers

Teaching by

Student Ability

Approaches

Global Standard

Assessment

Community and

Regional

Partnership

Other Education Policies

accelerating the quality of education improvement, the ability to adopt technology, and the source of productivity

for entering era of industry 4.0

Transformation of

school principal

leadership

14


LPDP Scholarship(Students)

• 4,000 – 5,000

• 5,000School Operational Assistance

(BOS)(Million people)

Transfer to Region and Village Fund *TKDD)


• 44.7

• 45.8

• 8,9

• 8,9

Non-Civil Servant -Teacher Allowance(Thousand Teachers)

• 270,9

• 270,9

• 274,6

• 274,6

Bidik Misi Scholarship/ Indonesia Smart Card for Collage (KIP Kuliah)

(Thousand Students)

Ministry of Education and Culture


• 1,095.1

• 985.0

• 52.6

• 52.6

Smart Indonesia Program(Million Students)

• 17.9

• 17.9

• 2.2

• 2.2

• 2021

• 2020

ACHIEVEMENTS AND EDUCATION DEVELOPMENT TARGETS TO SUPPORT THE

HUMAN RESOURCES QUALITY IMPROVEMENT





15


INDUSTRIAL REVOLUTION 4.0 AND THE DIGITAL ECONOMYChallenges and Opportunities for Future Economic Development

OPPORTUNITIESCHALLENGES

Industrial Revolution 4.0 a shift

in the job landscape.

New and emerging technologies

led to the automation estimated

around 60% workers will be

replaced by technology.

The potential of job replaced in

Indonesia estimated around

51.8%.

The growth of various business

activities and online-based market

has not been followed by

optimization of state revenues and

monitoring of tax compliance on

these transactions.

The impact of digitization, automation, and

the use of artificial intelligence in economic

activity:

increase productivity and efficiency;

provide convenience and comfort for

consumers.

The impact digital technology:

distance learning;

e-government implementation;

financial inclusion through financial

technology (fin-tech); and

the development of MSMEs that in line

with e-commerce development.

1. Developing the national digital

infrastructure

2. Improving the distribution of goods

and materials

3. Redesign the Industrial Zone

4. Empowering the MSMEs

5. Attracting the investors

6. Improving the quality of human

resources

7. Developing the innovation

ecosystem

8. Providing the incentives for

technology investment

9. Accommodating the sustainability

10.Harmonization of rules and policies

10 NATIONAL INITIATIVES

Source: The road map for the implementation of making Indonesia 4.0. Ministry of Industry

16


focused on developing and utilizing technology in several sectors to support and improve the quality and delivery of

services to the public

1. Accelerating the digital transformation for governance;

2. Realizing efficient and fast public service delivery, such as for

education and health;

3. Consolidating and optimizing shared infrastructure and services;

4. Realizing community inclusion in development priority areas and

promoting equality with additional internet access in remote areas

ICT DEVELOPMENT IN 2021

2021 Policy Directions:

1. Provision of Base Transceiver Station (BTS) of 5,053 village locations in the

remote areas

2. Provision of internet access at 12,377 public service locations

3. Development of a National Data Center

4. Digital Literacy, Strategic Sector Digital Transformation, Digital

Technopreneur

5. Electronic System Operation Control

6. Updating of Integrated Social Welfare Data (DTKS), IT devices and

Communication Networks

7. Supporting the digitalization of education such as the procurement of ICT

tools and learning media

ICT Strategic Activities in 2021:

Ministry of Social Affairs IDR 1.5 T

Ministry of Land and Spatial Planning /

National Land Agency IDR 0.1 T

The Ministry of Communication and

Information Technology IDR 14.7 T

Ministry of Finance IDR 2.1 T

Other Line Ministries IDR 2.2 T

Transfer to Region and

Village Fund IDR 9.0 T

2021 ICT

Budget

Allocation IDR

29.6 T

17


THE DEVELOPMENT OF SOCIAL SECURITYAs an Effort to Accelerate Social Recovery for the Poor and Vulnerable Poor Families and Ensure Access to Health and Education

THE EMPOWERMENT PROGRAM SYNERGY

Empowerment program synergy (such as

Social Entrepreneurship, Micro Enterprises

and employment programs)

INTEGRATION OF BASIC FOOD CARD

WITH ENERGY SUBSIDY PROGRAMGradual and careful integration of the Basic

Food Card program which is more based on

the target beneficiaries with the commodity-

based energy subsidy program

PKH AND SMART INDONESIA

PROGRAM (PIP) INTEGRATION

Gradual integration of the PKH and the PIP

CONTINUING THE SOCIAL SECURITY

PROGRAMS

For accelerated recovery (including basic

food cards, Family Hope Program (PKH),

cash assistance for 6 months, and pre-

employment cards).

The COMPREHENSIVE SOCIAL

SECURITY PROGRAM

Encouraging comprehensive social security

programs based on life cycles and

anticipating aging population

IMPROVEMENT OF INTEGRATED

SOCIAL WELFARE DATA (DTKS)

Enhancing Integrated Social Welfare Data

(DTKS) and improving the mechanism for

distributing the Social Security program, as

well as strengthening monitoring and

evaluation.

Policy Direction for the Social Security Sector 2021

Social Security reform to increase the effectiveness of program implementation through:

18


SOCIAL SECURITY PROGRAM BUDGET FOR 2021To Achieve Development Priority Targets

The Social Security Development Priority

Targets include:

-15%

2016 2017 2018 2019 2020 2021

Social Security Budget 2016-2021

31%

7%

28%

6%4%

% Growth

20212020

Number of Students receiving

PIP assistance20.1 Mio

20.1 Mio

Number of Students

Receiving KIP Kuliah1.1 Mio1.0 Mio

The total population of participants

Recipient Contribution (PBI) –

National Health Insurance (JKN) 96.8 Mio

96.8 Mio

The Total Beneficiary of

PKH 10 Mio

10 Mio

The total Beneficiary of

Cash Transfer9.0 Mio

10.0 Mio

The total Beneficiary of

Basic Food Card 20.0 Mio

18.8 Mio

Rp

19


269,1

381,2 394 394,1

281,1

413,8

2016 2017 2018 2019 2020* 2021

Connectivity Energy & Electricity Information &Technologhy

Basic Services

Airport10 unit

Railway378 km’sp

Bridge13,1 km

Road 678,0 km

Flats &special house11,650 units

Dams47 units (43 on going & 4 new)

Sanitation & Waste Management1,037,010 HH

Gas Network (Jargas) for Household120.776 SR

BBM Conversion to BBG for fisherman25 ribu unit

Palapa Ring:West 40%;Center 30 %;East 30 %

BTS Provision in 3T region* in5.053 lokasi

Strategic Output Target 2021

Irrigation20 tho Ha

In trillion IDR

5.1% 41.6% 3.4 % 0.0 % -28.7% 47.2 %

Central Government

Regional Transfer and Village Fund

Financing

Total

2020* 2021

140.1 236.3

112,5 131.8

28.5 45.8

281.1 413.8*Perpres 72 / 2020

1. Continue the infrastructure

development after the

COVID-19 pandemic by

strengthen digital

infrastructure and

encourage logistic

efficiency and

connectivity

2. Aimed at labor intensive

infrastructure which

support industrial and

tourism area

3. Community health facilities

development and basic

needs delivery ( water,

sanitation, housing) to

support national health

system strengthening

program

4. Completion of priority

program which delayed in

2020

Policy in 2021

*3T= underdeveloped, remote and borderland region

INFRASTRUCTURE BUDGET IN 2021 FOR BASIC SERVICE DELIVERY, CONNECTIVITY ENHANCEMENT, AND ECONOMIC RECOVERY SUPPORT

20


CHALLENGE ON TOURISM SECTOR TOURISM INFRASTRUCTURE PROVISION AND IMPROVEMENT, HUMAN CAPITAL IMPROVEMENT, AND INVESTMENT CLIMATE FOR ECONOMIC RECOVERY

#50thfrom 141 countries

2015

4,0 Score

Indonesia Tourism Rank has improved

Indonesia is one of favorite tourism

destination for the beautiful natural scenery

and the affordable trip cost

However due to Covid-19

pandemic in 2020,

culinary and tourism

halted thus affecting 12.7

mio labor (including

hotel, restaurant, and

transportation)

Recovery Program for Tourism

and Creative Economy

Policy formulation and strategic research

Develop human capital capacity, and strengthen Tourism and Creative Economy institution

Destination and Infrastructure Revitalization

Development on Attraction, Accessibility and Amenities (3A), Promotion and Marketing

Industrial development and Investment on Tourism and Creative Economy

Tourism Product and Event development

Digital Economy and Creative Product development

Tourism have a lot of opportunities, but also facing

some challenges:

#40thfrom 140 countries

4,3

2019

COVID-19

Opportunity

Challenges

• 10 main destination : North Sumatera, Bangka Belitung, North Sulawesi, West Papua, Central of Java, East Java, NTB, NTT, North Maluku, danSouth East Sulawesi

• Tourism revenue as foreign exchange source

• Apart from Bangka Belitung, DKI, and Banten, the average spending for every main destination still below national average

• Labor in tourism sector is dominated by high school graduates only

• Labor in tourism sector mostly have not registered to health insurance yet

• Labor in tourism sector spends more compare to labor in agriculture sector

21


Budget Allocation for Tourism in 2021 IDR 15,7 T (i.e. to develop 5-super-priority tourism destinations IDR 5 T )

22

1. Facilitate construction and development for supporting residence and arrange tourism area in 5-super-priority tourism destinations.

2. Develop 5-priority other tourism destination, and basic infrastructure in Bangka Belitung, Bromo-Tengger-Semeru, Wakatobi, Morotai and Raja Ampat

3. Promote tourism 4. Build road and bridge at 5-super-priority tourism destination5. Build port/dock in tourism area

Ministry of Public Works and Public Housing

IDR 4,0 T

Ministry of Transportation

IDR 0,5 T

Ministry of Tourism and Creative Economy

IDR 4,9 T

Other Line Ministries

IDR 1,1 TGrant to Region IDR 0,9 T

Regional Transfer and Village Fund

IDR 4,3 T

Strategic Program in Tourism Sector for 2021 Policy Direction in 2021

i.e.1. Tourism recovery → development in 5-super-priority tourism

destination (Danau Toba, Borobudur, Mandalika, LabuanBajo, Likupang);

2. Development on 3A aspects (Attraction, Accesibility, and Amenities) and improvement on 2P (Promotion and private sector Participation)

3. Storynomics tourism approach by using story telling, creative content, living culture and heritage attractiveness.

4. PPP Scheme to build entertainment centers such as theme park that will become tourist attraction.

TOURISM SECTOR DEVELOPMENT IN 2021 PRIORITY PROGRAM TO SUPPORT TOURISM SECTOR RECOVERY


TOTAL BUDGET ALLOCATION IN LINE MINISTRIES IN 2021 TO DEVELOP 5-SUPER-PRIORITY TOURISM DESTINATIONS ARE IDR 5.0 TRILLION

IDR 1.5 T

Danau Toba IDR 0.2 T

Likupang

IDR 1.4 T

Borobudur IDR 1.0 T

Mandalika

IDR 0.9 T

Labuan Bajo

Line Ministries Program

Infrastructure in tourism area

Tourism area development

Promote investment in tourism sector

Priority tourism destination branding and publication

Priority tourism exhibition in domestic and foreign

Integrated marketing cooperation

Tourism event support festival

Development of tourism human capital

Development of airport, ecopark

Development of technical material for spatial plans for region (RRTR/RDTR)

Art and culture exhibition

Internet access services

5-Super Priority Tourism Destination Budget Allocation

23


6%7%9%12%

2015 2016 2018 2020-21

SUBSIDY TO BE MORE TARGETED, INTEGRATED, AND SUPPORTING MSME AND COOPERATIVE

Non-Energy Subsidy Fertilizer Subsidy

- Improving data on subsidized Definitive Plan for Group Needs (E-RDKK) of farmers based on database by name by address.

- Efficiency of cost of goods sold fertilizers and changes in the composition of Nitrogen, Phosphate and Kalium (NPK) fertilizers

Public Service Obligation Subsidies

Support the improvement of public services in the field of public transportation and provision of public information

Tax incentives through Government-Borne Tax Subsidies (DTP)

Interest Subsidy for People's Business Credit (KUR)

The KUR ceiling increases from IDR 190 T (2020) to IDR 220 T (2021), with a portion of KUR micro 60%, small KUR 39%, and KUR placement of Indonesian Workers 1%.

119,1 106,8 97,6

153,5 136,9 95,6 110,5

66,9 67,4 68,8

63,4 64,9

96,4 64,8

186,0 174,2 166,4

216,9 201,8

192,0 175,4

2015 2016 2017 2018 2019 Perpres

72/2020

APBN

2021

Subsidi Energi Subsidi Non Energi

KUR interest rate

Energy Subsidy

Fixed diesel subsidy IDR 500 / lt (2020: IDR 1,000/lt) Household electricity subsidies for household with 450 VA and

900 VA power according to the Integrated Social Welfare Data Energy Subsidy Volume:

- LPG 3 Kg ► 7.5 million MT- Solar ► 15.8 million kiloliters- Kerosene ► 0.5 million kiloliters

The transformation of the commodity-based subsidy policy into target recipient-based policy through integration of social assistance.

Energy Subsidy Energy Subsidy

24


SUPPORT FOR DEFENSE, SECURITY AND LAW ENFORCEMENT INSTITUTIONSTo improve national stability in the implementation of economic development and recovery

fulfillment, modernization, and maintenance of defense equipment

maintaining the stability of defense encourages economic recovery

strengthen political, law, defense, and security stability promote economic recovery

Special Material Tools modernization

Human Resources profesionalisme

Ministry of Defense

137.3 117.9

The Indonesian National Police

112.1 92.6

Improved function of SPPT TI (Information Technology-based Integrated Criminal Justice System) in 283 courts

development of electronic proceedings in a court (e-court)

Handling/settlement of asset recovery related to criminal offenses

construction of a cyber attack monitoring room and SOC (Secure Online Communication) data center

Monitoring implementation of National Corruption Prevention Strategy

Development of Corruption Crime Case Management System supports SPPT-TI

Corruption Crime Asset Recovery

Supreme Court

11.2 9.9

Attorney of the Republic of Indonesia

9.6 5.7

Corruption Eradication Commission

1.3 0.9

2020(Perpres72/2020)

2021(IDR trillion)


Improving TKDD Quality Control and Encouraging Local Governments in Economic Recovery, and Improving the Quality of

Education and Health in order to support recovery and strengthening of the national economy

TRANSFERS TO REGION AND VILLAGE FUND (TKDD) 2021

Supporting economic recovery in line with national priorities, through

Development of accessibility and connectivity of economic growth centers.

Incentive to regions to attract investment, improve investment service systems, and support MSMEs.

Synergizing TKDD and Line Ministries Expenditures in the development of human capital (Education and Health).

Encouraging regional infrastructure spending through creative financing such as regional loans, regional PPP, and inter-regional cooperation to support the achievement of RPJMN target.

Redesign TKDD, especially the General Transfer Fund (DTU), and the Special Transfer Fund (DTK), by prioritizing performance-based budgeting and increasing accountability.

Improve TKDD budget performance and carrying out APBD reform through the implementation of Regional Unit Price Standards (SHSR) and the Standard Account Chart (BAS).

TKDD, 2015-2020 (trillion rupiah) General Policy:

Notes: Government support to regions other than trough TKDD is also provided through regional grants and regional loans

623,1 710,3 742,0 757,8 813,0 763,9 795,5

8,6%14,0%

4,5% 2,1%7,3%

-6,0%

4,1%

2015 2016 2017 2018 2019 Perpres72/2020

2021APBN

TKDD Growth TKDD

26


TRANSFER TO REGION AND VILLAGE FUND (TKDD) TO SUPPORT 2021 PRIORITY PROGRAMS

Support of education and health digitization, as well as digital village development

ICT Development IDR 9.0 T

Support for increased access and land and water connectivity in the context

of economic recovery*) Special Allocation Fund for Physical

Roads, Rural Transportation and Sea Transportation

Infrastructure and Connectivity Improvement

IDR 9.1 T*

• Support improvement of educational infrastructure based on intervention

completeness target of independent learning program.

• Support increased health system readiness, including availability of health facilities,

infrastructure and equipment, health facilities of regional and village

Education and Health Reform IDR 338.1 T

Support for the lower middle-income community from social and economic risks

*) Village Fund

Social Protection IDR 72.0 T*

Improve agriculture / fisheries businesses, supported by provision of road access and water sources conservation*) Including regional grants of IDR 1.1 T

Food Security and Welfare of Farmers / Fishermen IDR 10.15 T*

Support for the provision of facilities, amenities, tourism road access and tourism village development, followed by tax incentives, improving the quality of tourism destination governance and the capacity of tourism business actors*) Including regional grants of IDR 0.9 T

Tourism Development IDR 5.1 T*

27


OUTPUT TARGET OF PHYSICAL SPECIAL ALLOCATION FUND FOR 2021

- Construction of 971 Public Health Center Buildings

- Construction of 12 primary hospitals- Development of Function Transfer of Family

Planning Extension Centers 409 units

- Construction of 17 units of Waste Recycling Center

- Procurement of 348 waste containers- Procurement of Equipment / System for

Water Quality Monitoring 92 units

- Maintenance / Rehabilitation of 2,375 KM Roads- Reconstruction / Improvement of Road Structure

Capacity 10,076 KM- Widening of 229 KM Road- 699 KM Bridge Construction- Maintenance / Rehabilitation of 968 KM Bridges

- Provision of Housing in slums of 50,000 units- Integrated Slum Management with 1,000

units- Provision of housing in affirmed areas for

1,570 units

- Expansion of 117,097 house connections- Development of 167,110 house connections- Improvement of 111,350 house connections

- Development of Domestic Wastewater Management Systems 33,975 house connections for Settlement Scale, 465 at City Scale, and 436,636 at Local Scale

- Procurement of 115 units of feces trucks

- Construction / Rehabilitation and infrastructure in 111 Fishery Ports

- Construction of 6 units and revitalization of 47 units of Gudang Garam Rakyat

- Construction / Rehabilitation of infrastructure in 57 Conservation Areas (6.58 million Ha)

- Village road construction 1,769 km- Construction of 356 units of people's wharf- Renovation of 110 units of Suspension Bridge

- Irrigation Development 41,488 Ha- Irrigation Rehabilitation 335,584 Ha- Flood Control Infrastructure Development

23.6 km

- Development of 3,355 Water Source units- Construction of 1,000 km of Farmer Business

Roads and Production Roads- Provision of 1,973 units of Agricultural

Training Centers in the District and their supporting facilities

- Construction of 20 small and medium industrial centers and revitalization of 100 IKM centers

- Rehabilitation of Port Facilities at 80 Ports- Construction of 10 Units of Water Bus and 10

Units of Roro Water Bus

- Improvement of facilities and infrastructure in 23,016 education units

- Construction of 34 units and Rehabilitation of 36 units of Public Library Service Facilities Building

- Development of Tourism Area Amenities and Development of Tourist Attractions in 154 Regions

EDUCATION

LIVING ENVIRONMENT

TOURISM

ROAD

HEALTH

SEA TRANSPORTATION

WATER

AGRICULTURE

SANITATION

MARINE AND FISHERIES

IRRIGATION

RURAL TRANSPORTATION

HOUSING AND SETTLEMENT

SMALL AND MEDIUM INDUSTRY

28


NON-PHYSICAL SPECIAL ALLOCATION FUND: 2021 TARGET

School Operation Assistance (BOS)

BOS Regular : 44,66 million studentsBOS Affirmation : 5,335 school & BOS performance-based : schools

Operational assistance for early childhood education center

( BOP PAUD)

6,700 thousand students

Operational assistance for education equivalency

719.5 thousand students

Operational assistance for museum and cultural centers

113 museums and 19 cultural centers

Teacher Allowance for PNSD (regional teacher):

TPG: 1,09 million teachers; TAMSIL: 124,7 thousand teachers;

TKG: 35,5 thousand teachers

BOK (operational support for family) and BOKB (operational

support for family planning program)10,143 public health centers (puskesmas) and 5,889 family planning

counseling centers

Tourism Service Fund

44,320 workshop trainees and 50 TIC

Capacity Building Fund for Cooperatives and SMEs

57,026 workshop trainees and 863 mentors

Citizen Administrative Service Fund

33 provinces and 508 regency/city

Operational Assistance for Waste Management

1 city is in operational for the year 2021

Fund for Protection of Women & Children

34 provinces dan 216 regency/city

Investment Faciltation Fund

10,382 projects and 111,624 business owners

Food and Agriculture Security Fund

2,300 community groups

29


2021 VILLAGE FUND Village fund policies are geared to improve the village fund performance, while supporting economic recovery and priority sectors

Reformulation of allocation and village fund distribution

Focus on village economic recovery

Support development of priority sectors

• Reformulation of allocation to improve village fund allocation based on the village characteristics.

• Strengthen performance-based budget allocation to enhance village economy.

• Strengthen sustainability of cash-intensive programs and social safety nets.

• Empowering SMEs and agricultural sector.• Increased productivity and transformation of the village

economy.

• Development of village economic potential.

• ICT development through digital village programs.• Supporting food and animal security.• Tourism development.• Improving connectivity through village infrastructure

development.• Supporting tourism through the development of tourist

villages.

Village Fund, 2015-2021 (IDR Trillion)

VILLAGE FUND OUTPUT PERFORMANCE 2015-2019

Village Fund Policy Direction

2

3

1

20,8

46,7 59,8 59,9

69,8 71,2 72,0

0,0%124,8%

28,0% 0,2% 16,6% 2,0% 1,1%

2015 2016 2017 2018 2019 Perpres72/2020

2021APBN

Dana Desa Growth Dana Desa

Support local economic and community activities

Improve livebeings village communities

30


ISSUANCE OF GOVERNMENT SECURITIES (SBN)The projection of net SBN (SUN and SBSN) according to the deficit financing.

SBN 2015-2021 (IDR Trillion)

SBN Yield 2015-2020 (%)

006

007

008

009

010

Jun

-15

Dec

-15

Jun

-16

Dec

-16

Jun-

17

Dec

-17

Jun-

18

Dec

-18

Jun

-19

Dec

-19

Jun

-20

Yield SBN 10Y Linear (Yield SBN 10Y)

COVID 19 Impact

Most of debt financing are through SBN issuance.

Supply and demand of the SBN in the financial market and SBN yield affect debt financing and fiscal burden.

Macroeconomic stability and improved debt management had an impact

on improved credit ratings, driving yield improvements in the last 4

years.

The Covid19 pandemic in 2020 has caused global financial turmoil, which

led to a significant increase in the SBN yield.

Since June 2020, SBN yields have begun to improve as volatility eases

and the confidence of financial market players has resumed.

Debt Financing Plan 2021:

Optimize SBN auctions that leverage BI participation (regular

auction, green shoe option and private placement).

Procurement of foreign currency cash debt by utilizing flexibility

between debt instruments to support financing needs.

The issuance of SBN retail to attract domestic investors and for

financial deepening.

31


GOVERNMENT INVESTMENT FINANCING POLICY 2021

QUALITY HUMAN RESOURCES

• Increase productivity and competitiveness of human resources

• Ensure sustainability and intragenerational of education programs

01

Education budget through Financing IDR66.4 Trillion

1. LPDP IDR20.0T

2. Endowment research

fund IDR3.0T

ACCELERATION OF INFRASTRUCTURE DEVELOPMENT

• Increase the competitiveness of export and investment and exports• Infrastructure development in the transportation, housing and energy

security sector

Infrastructure budget IDR45.1 T

1. PT PLN IDR5T

2. PT HK IDR 6.2T

3. PT SMF IDR 2.25T

4. PT PAL IDR 1.3T

5. Pelindo III IDR 1.2T

6. PT ITDC IDR 0.47T

7. PT KIW IDR 0.977 T

8. BLU PPDPP IDR 16.62T

9. BLU LMAN IDR 11.1T

02

3. Cultural endowment fund IDR2.0T

4. Higher education endowment fund IDR4.0T

5. Education financing IDR37.4 T

ENCOURAGING NATIONAL EXPORT PROGRAMS

• Support export-oriented goods and services industry• Strengthen domestic goods and services competitiveness in the

international markets

03

National Export Program Budget for LPEI IDR5.0 T

STRENGTHENING SMES, MICRO ENTERPRISES (UMI),

INSURANCE & GUARANTEE INSTITUTIONS

Institutional Support and Empowerment IDR22 T

1. PT BPUI Rp20.0T 2. BLU PIP Rp2.0T

• Development and empowerment of SMEs in the UMI

sector.

• Improved data accuracy and distribution.

• Strengthen capital structure and financial capacity .

04

INCREASE INDONESIA’S PARTICIPATION IN GLOBAL

FORUM

Maintain and strengthen Indonesia's position in the

International Forum and Financial Institution

organization.Indonesia’s participation and contribution

budget for international forum IDR2.9 T

1. BLU LDKPI IDR2.0T

2. LKI investment IDR0.9 T

05

32


CONCLUSION

1) In 2021, global and domestic economic uncertainty remains high, and confidenceis still fragile. Pandemic control and vaccine availability will determine the rate ofacceleration of economic recovery.

2) The 2021 state budget deficit of 5.70 percent of GDP aims to maintain themomentum of economic recovery.

3) We will continue to pursue countercyclical and expansionary policy in 2021 byconsidering the flexibility to respond to rapidly changing economic conditions whileencouraging prudent and sustainable fiscal management.

4) National development priorities will focus on Health, Education, Information andCommunication Technology, Food Security, Social Protection, Infrastructure, andTourism.

33


[email protected]


THANK YOU

state budget 2021

Documents