Inp.polri.go.id - Jakarta. The Finance Minister Sri Mulyani Indrawati says the budget for social protection (perlinsos) within the State Revenue and Expenditure Budget (APBN) had covered several social levels from the lower to the middle class.

"We did not give the social protection only to the poor and vulnerable, but also to the middle class," says State Treasurer Sri Mulyani on Friday (8/16/2024).

The social protection includes Keluarga Harapan Program (PKH) and Food Card program which aim towards 10 million families. Then, in education sector there is Smart Indonesia Card (KIP) and School Operational Aid (BOS), while in medical sector, there is Recipients of Health Insurance Contribution Assistance (PBI JKN).

"Those are aids that are mostly felt by the lower class, but we also gave the aid through a subsidized form," explains Minister Sri Mulyani.

Subsidized aid is given to make the item price lower, particularly fuel oil, electricity, and 3 kilogram gas cylinder. With that aid, the purchase power of the people could be maintained.

"Subsidy protects people's purchasing power in all levels, from the lower class to the upper class," adds State Treasurer Sri Mulyani.

On the other hand, the government also provides value added tax (VAT) exemptions for a number of groups, such as basic necessities, education, health and transportation. The Finance Minister said that this incentive was enjoyed by the middle to upper class groups.

Across 2015-2023, the government has spent 127.6 trillion IDR for social protection. According to Sri Mulyani, the aid fund has able to reduce poverty from 11.25 percent in 2014 to 9.03 percent. Moreover, the unemployment rate has also reduced from 5.9 percent to 4.82 percent.

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