IDR 13.93 Trillion Cash Assistance at the Beginning of the Year Effectively Move the Economy

JAKARTA (January 6, 2021) - The Ministry of Social Affairs has distributed cash assistance worth IDR 13.93 trillion to Beneficiary Families (KPM) throughout Indonesia. The distribution of cash assistance at the beginning of this year is a form of the Ministry of Social Affairs' significant contribution in driving the economy.

As is known, the national economy is still experiencing a deceleration as a result of the Covid-19 pandemic. The distribution of cash assistance directly to KPM is believed to have a significant impact on economic movements.

"This assistance was received by KPM. So, I asked to immediately spend it at the nearest stalls. So that there is an economic turnaround," said Social Minister Tri Rismaharini in Jakarta (06/01).

Previously, President Joko Widodo had symbolically launched Cash Assistance throughout Indonesia at the State Palace (04/01). The event was also attended by governors in 34 provinces via teleconference.

There are three types of cash assistance launched by the President, the Family Hope Program (PKH), the Basic Food Program / Non-Cash Food Assistance Program (BPNT), and Cash Social Assistance (BST).

Therefore, Risma advised KPM to spend the cash assistant wisely. Money from assistant should be used for spending urgent needs and to help ease the burden during the pandemic.

"Use the assistance provided wisely and efficiently. For example, to improve family health, increase children's education, and reduce family burdens, basic needs, business capital and some for savings," said Risma.

He warned that the assistance provided was not to buy cigarettes. "Be careful, especially for gentlemen. Don't buy cigarettes. Use them to buy basic necessities so that you can lighten the burden during the pandemic," said Risma repeating the President's message.

With this assistance, the circulation of money in the regions is very large, Risma gave an example, for the Basic Food Program / BPNT with a budget of IDR 3.76 trillion, if it is divided by 514 regencies / cities, each will get IDR 60 billion. "This is very big and helps the regional economy not to decline," she said.

The government officially launched 3 cash assistance in order to deal with the impact of the Covid-19 pandemic in early 2021. The government continues the cash transfer program to reduce the impact of the Covid-19 pandemic and encourage economic movement.

For this puIDRose, in the 2021 State Budget (APBN), the government has allocated a budget of IDR110 trillion. In more detail, PKH reaches 10 million KPM with a total budget of IDR 28.71 trillion.

PKH is distributed every 3 months, in 4 stages (January, April, July and October 2021) through HIMBARA (BNI, BRI, Mandiri and BTN). "In January, PKH will be distributed with a budget of IDR. 7.17 trillion," said Risma.

For the Basic Food Program / BPNT, the target recipient is 18.8 million KPM with a budget of IDR.45.12 trillion, which is channelled through HIMBARA and appointed agents from January - December 2021 with an index of IDR.200,000 / month / KPM. The total budget to be distributed in January is IDR 3.76 trillion.

Then Cash Social Assistance is distributed through PT Pos for 4 months (January-April 2021) with an index of IDR 300,000 / month / KPM. The target recipient for Cash Social Assistance is 10 million KPM with a budget of IDR 12 trillion. In January, Cash Social Assistance will disburse a budget of IDR 3 trillion.

"So that the total budget distributed in January is IDR. 13.93 trillion," said Risma.

Public Relations Bureau

Ministry of Social Affairs