05 Oct Destitution Increasing! 5 Quick Steps Taken by Indonesian Government During the Pandemic
Comuniti – The year of 2020 will be the worst year for the whole world, and no exception Indonesia. The Corona virus or Covid-19 has spread throughout the world and entered our homeland on March 2,2020. This pandemic has had a huge impact on various aspects, one of which is the economy. The Covid-19 has made our country economy slump sharply, causing destitution for the affected families, MSMEs, and others. The government must also find ways to overcome this destitution (also known as poverty)problem that increase since 2020.
Curious what steps that have been taken? Let’s take a peek at some of the ways that the Indonesia’s government is taken to overcome the destitution during this pandemic.
- Cash social assistance (Bantuan Sosial Tunai) or BST
Cash social assistance (Bantuan Sosial Tunai) or BST is assistance distributed by the Indonesian government to families affected by the Covid-19 and families in poverty. BST itself targets 10 million families from Sabang to Merauke with each family getting IDR 300.000/month for three months. The total budget for this assistance is IDR 12 Trillion.
2. Family Hope Program (PKH)
Family Hope Program (Program Keluarga Harapan) or PKH is assistance given to accelerate destitution eradication with the targets pregnant women, children that are still in school, and society that deserves by their situation. PKH is given in the form of cash and basic necessities. The amount of funds budgeted by the government is IDR 28.31 trillion and this assistance is given in the hope that children from poor families can continue to study, reducing the families load, and improving families health.
The nominal received varies according to current conditions and the level of the school being pursued. Starting from IDR 900,000 for elementary school children, IDR 1,500,000 for junior high school children, IDR 2,000,000 for senior high school children, and IDR 2,400,000 for pregnant women, receptors of disability, and elderly.
3. Special Assistance for Basic Materials
The assistance for basic materials is divided into 2, namely assistance for the Indonesia’s people living in the Greater Jakarta area (Jabodetabek) and outside Greater Jakarta area (Jabodetabek) with a total budget of IDR 19.4 trillion. For 3 months, the nominal provided for this assistance is IDR 600,000/month for each family who suffers from poverty and who does not receive PKH assistance during the pandemic.
4. Pre-Employment card (Kartu Prakerja)
The Pre-Employment Card is a program made by the government with the aim of improving the skills of every citizen at work. This program targets 5.6 million people with a total budget of IDR 20 trillion. All groups of people ranging from job seekers, fresh graduates, people affected by the pandemic, and etc can join the program campaigned by the President of Indonesia, Joko Widodo. Anyone who participates in this program will receive training/debriefing of work competencies and incentives provided in a non-cash manner. Each recipient of the Pre-Employment Card will receive a total benefit package of IDR 3,550,000 and our President hopes that this step can tackling the poverty and reduce unemployment.
5. Various assistance for MSMEs
MSMEs or Micro, Small and Medium Enterprises, is one of the important pillars in upholding the Indonesia’s economy. The number of MSMEs in our country is estimated at 64.19 million. The Covid-19 certainly has an impact on MSMEs, where many have had to lay off their employees, experience losses, and even went bankrupt. So the government is trying to make a number of policies to revive MSMEs during this pandemic. There are several ways that have been taken, such as
a. The first step is, the implementation of a low interest fund system in banking. This policy was carried out to facilitate banks in restructuring and providing new loans to MSME actors;
b. Second, the product of People’s Business Credit or Kredit Usaha rakyat (KUR). KUR is the distribution of credit to MSME actors with a budget of IDR 66.99 trillion. MSME actors can take loans starting from IDR 1 million to IDR 25 million with interest of only 3%;
c. The last step is Presidential Assistance for Productive Micro Enterprises or Bantuan presiden produktif usaha mikro (BPUM). BPUM is an aid distributed by President Joko Widodo to MSMEs in the amount of IDR 1.2 million for each business. The total budget for BPUM 2021 provided is IDR 15.3 trillion with a target of 12.8 million MSME actors.
Those are some of the efforts that have been made by the Indonesian government in overcoming the poverty problem suffered by the community and revitalizing MSMEs affected by this pandemic. Hopefully this effort can help people in their daily lives during this situation and give a new hope in improving the economy. Don’t forget to always wear a mask when going outside and avoid crowds to prevent the increase in the number of Covid-19 cases so that we all can live normal lives as before.