Gov’t Allocates Rp796.3 Trillion for Transfer to Regions, Village Funds
Date 14 Agustus 2020
The budget for Transfer to the Regions and Village Funds (TKDD) has been earmarked at Rp796.3 trillion in 2021 with 7 (seven) general directives, President Joko “Jokowi” Widodo.
The President made the statement in his address on the Presentation of the Government Statement on the Bill on the State Budget for the 2021 Fiscal Year and Its Financial Note before the Plenary Session of the House of Representatives of the Republic of Indonesia, Jakarta.
With the budget, the President issued seven directives as follows:
First, support economic recovery measures in line with the national priorities through the development of accessibility and connectivity of the economic growth centers, incentive support to the regions to attract investment, improvement of the investment service system, and support for MSMEs.
Second, optimize the use of revenue sharing fund in order to support healthcare services, social safety net, as well as economic recovery as the impact of COVID-19 pandemic.
Third, allocate 25 percent of general transfer fund to accelerate the program of regional economic recovery and human resources development.
Fourth, focus on the use of Regional Incentive Funds or DID (Dana Insentif Daerah) for digital transformation of the education and health sectors, and to empower MSMEs.
Fifth, refocus and simplify types, fields, and activities of Regular Special Allocation Fund for Infrastructure (DAK Fisik Reguler) and Special Allocation Fund for Priority Infrastructure (DAK Fisik Penugasan).
Sixth, the Operational Special Allocation Fund (DAK Non–Fisik) also supports improvement of human resources in the education sector through independent learning program as well as additional strategic sectors, such as fund for women and children protection services, capital investment facilitation fund, and food security service fund.
Seventh, better-targeting of the allocation of village funds for village economic recovery and development of priority sectors, such as information and communication technology, tourism village development, and achievement of food security.
In the last five years, according to the President, the outcomes of the use of TKDD budget have been enjoyed by the public through improved performance of basic public services such as improved household access to drinking water and proper sanitation as well as assisted delivery by health workers.
According to the President, level of inequality in rural areas has also decreased as indicated by increasingly lower Gini ratio from 0.316 in 2016 to 0.315 in 2019.
“Likewise, the percentage of poor communities in rural areas that fell from 13.96 percent in 2016 to 12.60 percent in 2019,” he said. (TGH/MAY/EN)
Reviewed by: Muhammad Ersan Pamungkas