Home Minister urges local governments to expedite realization of 2021 APBD expenditure

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Home Minister urges local governments to expedite realization of 2021 APBD expenditure
Home Minister Muhammad Tito Karnavian. Photo: SETKAB.GO.ID

IO – Home Minister Muhammad Tito Karnavian explicitly asked the regional governments (Pemda) to expedite the realization of the local government budget (APBD) for the 2021 fiscal year. “More than Rp 700 trillion of the budget from the central government was transferred to regions. And regions also have fiscal space from local own-source revenue (PAD) as well as from other sources,” he said at the 2021 Regional Budget Absorption Coordination Meeting, Monday (11/22/2021).

Previously, in a Plenary Cabinet Session, President Joko Widodo ordered speedy realization of government spending, both the APBD and the state budget (APBN), because the expenditures will contribute to supporting national economic growth. The meeting was also attended by the Finance Minister and regional governments.

The Home Minister added that regional spending makes money circulate in the local economy, which will result in increased purchasing power and household consumption. Not only that, APBD spending can also stimulate the private sectors that have been facing dire financial contractions due to the COVID-19 pandemic.

The expenditure acceleration is also related to the 5% economic growth to be achieved by the end of 2021. To reach the target, support from various elements is needed, including regional governments, through the realization of APBD expenditures.

Minister Tito urged regional heads to hold internal coordination meetings to explore which programs could be delivered sooner. Similar meetings should also be conducted by governors – as the representative of the Central Government – with the regents and mayors in their respective regions. “The point is to expedite spending in their respective
domains,” he said.

Based on data from the Directorate-General of Regional Financial Development of the Home Ministry, as of Nov.19, 2021, the average percentage of the spending of provincial APBD in 2021 was 65.12%, district APBD 61.15 %, and city 59.08%. (eka)