Indonesia to hike social aid, health spending amid COVID-19 curbs

Fawziah, a 1-year-old infant, reacts as a healthcare worker takes a swab sample to test for the coronavirus disease (COVID-19) during mass testing at a school in Jakarta, Indonesia, July 2, 2021. REUTERS/Ajeng Dinar Ulfiana

JAKARTA — Indonesia will increase spending on social assistance and healthcare in response to a spike in COVID-19 cases and to soften the blow on the economy with tougher restrictions set to take effect this week, its finance minister said on Friday.

Sri Mulyani Indrawati said there will be additional cash assistance and an extension of electricity bill discounts, while some programmes such as food assistance will be brought forward.

The minister also expects economic activity in the third quarter to be affected by the upcoming coronavirus measures, which are due to run from July 3 to 20.