"Spending the existing budgets in every ministry as early as possible will be a motor over the dimming of a global economy that is not friendly because of the coronavirus attack," President Jokowi said at a plenary cabinet meeting at Bogor Palace, West Java, Tuesday.
President Jokowi issued a deadline that before the end of February 2020, all ministries and agencies should accelerate the disbursement of the budget.
The Head of State gave an example of the Ministry of Public Works and Public Housing (PUPR) which had disbursed the budget to build water canal infrastructure in Bandung District, West Java, in early February 2020. Then also the Ministry of Social Affairs which has disbursed Hope Family Program (PKH) in the first quarter of 2020.
"I also hope that the village funds can be immediately realized. As a result, the villages get a lever of purchasing power and their consumption will not be disrupted," said President Jokowi.
In early 2020 the source of global economic uncertainty increased after the coronavirus outbreak that had claimed the lives of more than 1,013 individuals as of Tuesday.
The Chinese economy - which is a large partner in the trade and investment sector for Indonesia - is expected to slow down in the first quarter of this year.
The Indonesian government hopes that the Indonesian economy will not be interrupted by the transmission of a potential slowdown in the Chinese economy.
The Ministry of Transportation (Kemenhub) has planned to add flight slots for airlines from the Middle East and East Asia, to increase tourist arrivals and boost the tourism sector. This policy was taken by the Ministry of Transportation as compensation after issuing a ban on flights to and from mainland China to anticipate the transmission of the coronavirus.
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China annually contributes to the visit of two million foreign tourists to the Indonesian tourism sector.
In addition to the tourism sector, Coordinating Minister for Economic Affairs Airlangga Hartarto revealed that the coronavirus outbreak has the potential to disrupt the supply of pharmaceutical raw materials from China into the country.
Disruption of supply of medicinal raw materials from China because China is extending the Lunar New Year holiday until mid-February 2020, thus disrupting the production process.
"We are still monitoring the next developments because the value chain will be disrupted and they will stop production temporarily," Airlangga said on the previous occasion.
The government in the state budget assumes economic growth of 5.3 percent in 2020. While Bank Indonesia is targeting domestic economic growth of 5.1 to 5.5 percent this year.
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