General Purpose Grants to be Based on State Revenue: President Jokowi
Date 4 April 2017
The allocation of General Purpose Grants (DAU) in the State Budget (APBN) will use a dynamic formula in calculating net domestic revenue. Therefore, regional governments must anticipate the changes in DAU.
The statement was made by President Joko Jokowi Widodo in his introductory remarks at a Plenary Cabinet Meeting on Indicative Ceiling of the Draft State Budget (R-APBN), at the State Palace, Jakarta, on Tuesday (4/4).
Thus, if the budget allocated to the regional governments is Rp1,000 billion, they may not get Rp1,000 billion this year. If Indonesias domestic income declined, the budget must follow. I work hard to collect revenue, and we often could not meet the target. Yet, the fund of DAU in the regions remains the same, President Jokowi said.
The President added that it will not be a problem if the grants remained the same, but the money must be kept in Regional Development Banks (BPD). President Jokowi also instructed all sides to play the same role in managing the budget.
If (the Government) allocates Rp1,000 billion and (the regional governments) simply use the budget, it wont be fair, the President added.
Special Allocation Fund and Village Budget
Regarding Special Allocated Fund (DAK), President Jokowi instructed all to use it to address the problem of gap in public services in the regions, as well as to synchronize programs between the regions and sources of funds.
In the meantime, the President requested the implementation of Village Budget in which the amount keeps increasing to be monitored, and use the budget mostly to increase productivity in order to reduce poverty, improve infrastructures, and open more job opportunities in the villages.
President Jokowi also asserted that 2018 is an important year for the realization of the Governments programs that are in line with the Nawacita (nine programs of President Jokowi and Vice President Jusuf Kallas Administration). For that reason, the President instructed all ministries/institutions to check working programs in their ministries/institutions more thoroughly, and in more detail manner to conform to the priorities.
Do not delegate the task to echelon 1, 2, or 3 officials. To all ministers, please check it out yourself, and monitor the programs in your ministries, once again, in detail. Dont be trapped in routinity, the President firmly said.
President Jokowi also asserted that the ministers must ensure that there is no corruption involved in Indonesias State Budget, and they must take preventive measures in their ministries/institutions. Do not hesitate to take firm action to protect the money in the State Budget, the President added.
The Plenary Cabinet Meeting was attended by Vice President Jusuf Kalla, Coordinating Minister for Political, Legal, and Security Affairs Wiranto, Coordinating Minister for the Economy Darmin Nasution, Coordinating Minister for Maritime Affairs Luhut B. Pandjaitan, Minister of State Secretary Pratikno, Cabinet Secretary Pramono Anung, Presidential Chief of Staff Teten Masduki, Minister of Finance Sri Mulyani Indrawati, Minister of Home Affairs Tjahjo Kumolo, Minister of Foreign Affairs Retno Marsudi, Minister of Defense Rymizard Ryacudu, Minister of National Development Planning (PPN)/Head of National Development Planning Agency (Bappenas) Bambang Brodjonegoro, Minister of State-Owned Enterprises Rini Soemarno, Minister of Trade Enggartiasto Lukita, Minister of Industry Airlangga Hartarto, Minister of Public Works and Public Housing Basuki Hadimuljono, Minister of Religious Affairs Lukman Hakim Saifuddin, Minister of Communication and Informatics Rudiantara, Minister of Environment and Forestry Siti Nurbaya, Minister of Manpower Hanif Dhakiri, Minister of State Apparatus Empowerment and Bureaucratic Reforms Asman Abnur, Minister of Transportation Budi K. Sumadi, Attorney General Prasetyo, Indonesian National Defense Forces Commander Gen. Gatot Nurmantyo, and Indonesian National Police Chief Gen. Tito Karnavian.