Gov’t to Sharpen 2023 Special Allocation Fund for Regional Development

President Jokowi, accompanied by Vice President Ma’ruf Amin and Cabinet Secretary Pramono Anung, enters a meeting room for a limited meeting at the President’s office, Jakarta, Thursday (04/14). (Photo by: PR/Rahmat)

In a bid to ensure the effectiveness of special allocation fund (DAK) for regional development, the Government has decided to sharpen the policy on DAK including the thematic concept, priority locus, and program effectiveness.

“In coming year, we will begin to sharpen it so that the DAK will be properly effective in assisting regional development. The DAK aims to link, synchronize national and regional programs where the State Budget and regional budget intersect” Minister of National Development Planning/Head of the National Development Planning Agency (KPPN/Bappenas) Suharso Monoarfa stated in a press statement after a limited meeting on the Government Work Plan (RKP) and Indicative Ceiling, Thursday (04/14).

The limited meeting, Suharso said, also discussed the damaged condition of 40 percent of regional roads even though they cover 90 percent of the entire road network in the country.

“Earlier, Mr. President also said that regency/city and provincial governments should allocate sufficient funds for the roads before the State Budget supports,” he said.

In the future, the Government will formulate a legal umbrella to regulate the handling of regional roads. “Perhaps in the form of Presidential Instruction for provincial and regency/city roads prioritized for productive roads that afford connectivity between production areas and consumer areas,” Suharso said.

In addition, the President also gave directives to sharpen the quality of expenditures of ministries/agencies such as increasing the quality of non-operational expenditures. Suharso stated that non-operational expenditures especially indirect expenditures to program must be axed. “Minister of Finance has explained that out of Rp977 trillion, around Rp620 trillion of that is non-operational expenditures,” he added.

In the 2023 RKP, the Government also pays attention to efforts in accelerating the alleviation of extreme poverty, tackle unemployment, increase decent jobs, and establish basic infrastructure (clean water and sanitation).

“This RKP is directed at preparing Indonesia as a country that is also concerned about climate change, especially on low-carbon development and energy transition,” he stated. (MAY/UN) (FI/HD/MMB)