The Government Allocates IDR 176.3 Trillion for the Public Welfare Sectors

infrastructure projects

The government, through the Ministry of Finance, has just allocated IDR 176.3 trillion in the 2023 National Expenditure Budget. The funds will focus on priority public welfare sectors such as the low-cost housing provision for low-income people.

This news was delivered by the Minister of Finance, Sri Mulyani. She explained that 48.5 percent of the budget, or IDR 85.3 trillion, was allocated specifically for the infrastructure cluster.

She ensured that the large funds would be used to support infrastructure, state capital participation (PMN), and provide low-cost housing for low-income people (MBR).

“As is well known, in 2023, the State Budget allocates Rp. 176.3 trillion in investment financing, of which Rp. 85.3 trillion in financing to support infrastructure development,” he explained at the Our State Budget Press Conference, Wednesday (22/2/2023).

Of the IDR 85.3 trillion, it was mainly allocated for state-owned companies carrying out assignments for the construction of toll roads in Sumatra and housing.

In the 2023 State Budget, the Ministry of Finance has also targeted investment financing for the provision of MBR housing with a value of IDR 26.21 trillion to finance 229,000 low-cost housing units.

This 2023 investment financing will focus on priority sectors of public welfare. In addition to low-cost housing, Sri Mulyani provided additional non-cash PMN to PT Rajawali Nusantara Indonesia (RNI), which is a state-owned food holding company worth IDR 2.5 trillion.

This is aimed at improving the capital structure of state-owned food holding companies in the food industry and improving the company’s main financial ratios to increase the company’s leverage capacity.

In the education cluster, the Ministry of Finance has allocated IDR 20 trillion in investment financing for Education Fund Management Institutions (LPDP) with a distribution target of IDR 3.082 trillion in 2023 from the endowment-managed funds.

Investment financing of IDR 176.3 trillion will also cover a community protection cluster worth IDR 4.3 trillion, food and environment IDR 4.8 trillion, international cooperation IDR 3.5 trillion, and others worth IDR 58 trillion.

However, the State Treasurer said that from the budget that had been allocated, in January 2023 it had not been realized.