VALITO.ID | The World Bank’s Board of Executive Directors approved funding of US $ 700 million to improve the social protection system and strengthen the financial sector in addressing the impact of COVID-19 in Indonesia.
The World Bank’s Chief Representative for Indonesia and Timor-Leste Satu Kahkonen said in a statement in Jakarta on Saturday that this assistance was needed because of the unprecedented nature and reach of COVID-19.
“For Indonesia, we support the government to continue to focus on protecting the most vulnerable and high-risk populations and increasing emergency preparedness for priority sectors,” he said.
In the long term, according to him, the readiness and ability to minimize these impacts is very important for ongoing efforts to reduce poverty and protect human resources.
The first project approved for this funding was additional funding for assistance of a social program worth US $ 400 million.
The initial project of the additional funding was approved three years ago and successfully supported various major government programs in social assistance.
The support includes expanding the Family Hope Program (PKH) from six million to 10 million families and improving the program delivery system and coordinating with other social assistance programs.
This financial assistance can help overcome the COVID-19 pandemic which has a major impact on the poor and vulnerable as well as informal workers.
The funding is also expected to help add temporary emergency funds for 10 million PKH recipients to maintain the level of social welfare.
This funding can assist the Ministry of Social Affairs in strengthening the capacity of the social protection system to enhance and provide timely protection for people affected by large-scale natural disasters or future epidemics.
In addition, this program will support the strengthening of PKH delivery systems and connect selected PKH recipient graduates with new social entrepreneurship programs to improve business skills.
The program will also support integrated social welfare data (DTKS) to include more poor and vulnerable households and expand the benefits of using DTKS for disaster response events.
The second project of the approved financing is a loan for reform policies in the development of the financial sector to address the impact of COVID-19 for Indonesia of US $ 300 million.
Support for development policies approved in March 2020 aims to help increase the depth, efficiency and resilience of the financial sector.
This additional funding will help the government cover unexpected financial limitations arising from the pandemic, and help overcome the COVID-19 crisis.
One effort to prevent the crisis is to support the real economy, including channeling funds to households and companies, while maintaining financial sector resilience.
Finance Minister Sri Mulyani Indrawati ensures that support from international institutions such as the World Bank can maintain the level of social welfare and overcome the impact of COVID-19 on the economy.
“We can provide assistance for various needs such as providing social assistance and maintaining the country’s economic security,” he said.
Sri Mulyani ensured the government was aware of the significant impact of COVID-19 on the livelihoods of many people on various sectors throughout Indonesia.
Therefore, support for the affected sector is the foundation needed by the government to act further to ensure the long-term recovery of the Indonesian people and economy. [Ant / korin]