VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

BKPM head Bahlil Lahadalia during a working meeting with Commission VI of the House of Representatives in Jakarta on Thursday (August 27, 2020). (ANTARA FOTO/Puspa Perwitasari/nz) 

The Investment Coordinating Board (BKPM) is aiming to realize budget absorption of above 95 percent by the end of 2020.

As of August 24 this year, BKPM’s budget realization had reached 47.8 percent.

"God willing, by the end of December, our (budget absorption) target is above 95 percent," BKPM head Bahlil Lahadalia said at a working meeting with Commission VI of the House of Representatives in Jakarta on Thursday.

Bahlil explained that for 2020, BKPM's budget ceiling has been set at Rp524.41 billion. The realization of budget absorption as of August 24, 2020 was Rp251.05 billion (47.8 percent).

Meanwhile, the realization of the BKPM budget throughout 2019 was recorded at Rp597.12 billion, or 93.21 percent of the ceiling of Rp640.60 billion.

"What has not been realized is only the remaining of the tender and some of our representatives whose salaries have been lowered because their performance has not been productive in several countries," he said.

Bahlil said he was optimistic of achieving a high budget absorption as the BKPM budget absorption trend has remained quite high during the last five years (2015-2019).

In the last five years, the realization of the BKPM budget has been 90 percent; 89.5 percent; 93.1 percent; 87.68 percent; and 93.21 percent, he added.

"This means that as time goes on, the realization of the BKPM budget is getting higher. So, it is important to supply additional budgets as well," he said.

Even though the investment realization target continues to increase every year, the budget allocated from year to year fluctuates. In 2015, BKPM received a budget allocation of Rp635 billion, in 2016 the budget fell to Rp488 billion. A year later, in 2017, the budget again fell to Rp470 billion.

In 2018, there was an increase to Rp548 billion, and in 2019, the budget was Rp640 billion. Meanwhile, in 2020, the budget ceiling has been set at Rp524.41 billion. (ANTARA)