Home Minister Instructs Regional Gov’t to Boost Budget Absorption

Minister of Home Affairs Tjahjo Kumolo

Minister of Home Affairs Tjahjo Kumolo instructed Regional Governments to boost their Regional Budget (APBD) absorption due to the high amount of unused funds (SiLPA) on each province.

“The average SiLPA of all provinces is almost Rp20 trillion,” Tjahjo said in Jakarta, Wednesday (19/6).

Based on the evaluation report on the implementation of the 2018 APBD, provinces with high amount of SiLPA are as follows:

1. Special Capital Region of Jakarta Rp12,171,689,204,491.00
2. West Java Province Rp2,250,000,000,000.00
3. Aceh Province Rp1,652,595,332,255.00
4. East Java Province Rp1,526,174,869,217.00
5. Central Java Province Rp686,759,423,000.00
6. Bali Province Rp510,757,121,691.00
7. North Sumatra Province Rp500,000,000,000.00
8. West Sumatra Province Rp486,422,448,521.72
9. Riau Province Rp68,313,634,620.20
10. Lampung Province Rp93,706,929,856.27
11. Special Region of Yogyakarta Rp465,119,895,321.23
12. Central Kalimantan Province Rp202,234,441,150.72
13. West Sulawesi Province Rp130,214,583,519.09
14. Central Sulawesi Province Rp367,635,953,127.04
15. Papua Province Rp888,119,740,276.61.

SiLPA by definition means the Remaining Balance of Budget, which is the difference between the realization of revenues and expenditures during a budget period. If the SiLPA in a region shows the number 0 (zero), it means the budget absorption is 100 percent.

The Minister’s instruction, to properly absorb and realize regional budgets, was intended to produce effective and efficient budget absorption and implement all expenditure programs. Considering the difficulty to absorb all budgets, the Minister asked regional heads to improve their competence in planning, budgeting, and implementing all programs.  (Puspen Kemendagri/ES)

Translated by : Fairuzzamani Inayatillah
Edited by : Rany A. Subachrum, Mia M. Bonaedy