events     July 27, 2020

Central-Regional Government Cooperation for the National Economic Recovery Program

Covid-19 pandemic in Indonesia has a significant impact on economic growth both on national and regional scale. The government does not remain silent and moves quickly by making various efforts and initiatives, one of which is by synergizing the stimulus for APBN/APBD spending with financing instruments to drive the economic sector in the region to remain able to finance various regional priority expenditures.

As a fiscal tool, PT SMI with the DKI Jakarta Provincial Government and West Java Provincial Government signed Cooperation Agreement on National Economic Recovery Loan at the Ministry of Finance, Jakarta (07/27) attended by the Minister of Finance, Chairman of the OJK Board of Commissioners, Coordinating Minister for Economic Affairs , Coordinating Minister for Maritime Affairs and Investment, Minister of SOEs, Minister of Home Affairs, Governor of DKI Jakarta, Governor of West Java, Echelon 1 of the Ministry of Finance, and Directors of PT SMI. The cooperation established by PT SMI in the form of lending within the framework of the National Economic Recovery Program (PEN) for regional is directed to provide alternative sources of financing for the region, accelerate regional economic recovery, encourage reforms in managing performance-based funds through program loans and activity loans, and encourage regions to utilize creative financing in regional development.

Another scheme of the PEN program is the Placement of State Money in the context of accelerating PEN distributed to State Owned Bank Association (Himbara) for phase I. In phase II, the Government will channel the placement of funds to Regional Development Banks (BPD), including BPD DKI Jakarta, BPD West Java & Banten, BPD North Sulawesi & Gorontalo and BPD Central Java. The signing ceremony for the document of Placement of State Money as proof of Government support for the recovery of the real sector was also signed between the Directorate General of Treasury – Ministry of Finance and the four BPDs on the same occasion.

At the same time, it was also handed over the Letter of Approval in Principle of Feasibility Support for the Project for Final Waste and Processing Site (TPPAS) Regional Legok Nangka from the Directorate General of Financing and Risk Management – Ministry of Finance to the West Java Provincial Government.

With these various schemes, PT SMI has played an active role in realizing the PEN objectives so that national economic recovery can be realized immediately and provide social, economic and environmental benefits for the people of Indonesia.

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