Home Affairs, Finance Ministers to Monthly Monitor Regional Budget Realization

Minister of Home Affairs Tito Karnavian delivers a press statement after a limited meeting at the Presidential Office, Jakarta, Tuesday (25/2). (Photo by: PR/Jay)

Minister of Home Affairs and Minister of Finance determined to continue monthly monitoring of regional budget realization at the provincial, regency, and municipal levels.

“The regional heads should immediately spend the (regional) budget so that the money can circulate to enhance people’s resilience under economic pressure,” Minister of Home Affairs Tito Karnavian during a press conference after a limited meeting at the Presidential Office, Jakarta, Tuesday (25/2).

At the same time, Tito added, village funds should also be immediately spent in accordance with the directives given to all provinces by a joint team of Ministry of Home Affairs, Ministry of Finance, and Ministry of Villages Development of Disadvantaged Regions and Transmigration.

According to the Minister, these efforts are directed to strengthen the country’s resilience to face the pressure of the world economy amid the Covid-19 virus outbreak.

“Right now, we are holding a roadshow to all provinces by gathering more than 70,000 village heads,” he stated.

The joint team which handles the roadshow, according to Tito, would explain the direct transfer scheme that had been implemented by Minister of Finance and the budget management.

“On 19 February, an approximately Rp1.3 Trillion has been transferred to the villages; the amount is four times the amount transferred in the same period of 2019,” Tito stated, adding that it covers three times more villages than the previous period.

Tito has also issued the circular letter and the instruction of regional budget spending has also been conveyed at the meetings in each province. “The Central Government has transferred approximately Rp856 trillion plus more than Rp200 trillion of Original Local Government Revenue (PAD).  It means that the budget in the regions reaches more than Rp1,100 trillion the President’s directive is to spend it,” he said.

The Minister also urges that the spending be carried out in accordance with the regulation.

“Don’t save it in the bank, the Minister of Finance can disclose the findings of several years earlier, there are some regions whose the money is deposited in the bank instead of circulating in the community,” Tito stated, adding that such an incident cannot reoccur as the purpose of the budget spending is to stimulate circulation of money as well as economic growth in the regions. (RSF/EN)

Translated by: Fairuzzamani Inayatillah
Reviewed by: Mia M. Bonaedy