Home Minister Urges Regional Governments to Speed Up Regional Budget Realization

President Jokowi accompanied by Home Affairs Minister, Finance Minister, National Development Planning Minister/Head of Bappenas, and Cabinet Secretary at the opening of the National Development Planning Forum at the State Palace in Jakarta (04/05/2021). (Photo by: PR of Cabinet Secretariat/Agung)

In a bid to support national economic recovery amid COVID-19 pandemic, Minister of Home Affairs Muhammad Tito Karnavian Tuesday (04/05/2021) urged regional governments to speed up the realization of this year’s regional budgets (APBD) by providing crash programs.

Tito also urged regional governments to work together to boost the APBD realization in the second quarter.

The realization of the 2021 regional budgets, he added, is important because it will be the foundation for economic recovery next year.

“The APBD realization in the second quarter is expected to increase in April, May, and June. So that it will hit 7-percent realization. Therefore, the Central Government needs regional governments to work together. Disburse the budget and do not forget to set the allocation in the regions,” Tito said.

The Minister also reminded regional governments not to disburse the APBD only at the end of the year.

Related to this issue, Tito has ordered Directorate General of Regional Financial Development to coordinate with Ministry of Finance’s Directorate General of Fiscal Balance to monitor regions that have yet to realize their budgets.

In addition, Tito expressed hope that Ministry of Finance can transfer the budget to regional governments based on their performance and work.

“So, if there were no performance, it would be better to hold the transfer and if it were running out, thhe Ministry could transfer,” he said.

On that occasion, Tito also urged regional governments to allocated budget that can be felt directly by the local communities, namely for education, health, and infrastructure sectors in order to boost the economy.

He also ordered regional governments to set up a special technical team to carry out the arrangement of the Regional Government Work Plan (RKPD), the APBD, and others projects so that they can go hand-in-hand with the Central Government.

“This arrangement is based on the principle “money follows programs”. First, we have to plan programs and the money will follow. Later, when the APBD is officially signed and ratified, our programs are based on the principle “programs follow money”. As for how much budget we have, it will be a foundation to carry out programs,” he explained.

Tito also reminded regional governments that the Central Government has the authority to supervise the expanse of the APBD and  will continue to improve and provide technical guidance to regional governments in managing the budgets. (PR of Ministry of Home Affairs) (AP/EP)