President Jokowi Calls For Speeding Up of Provincial Budgets Expenditures
Date 1 September 2020
President Joko “Jokowi” Widodo ordered governors and regents/mayors to speed up provincial budgets and regencies/cities budgets realization respectively, particularly on goods and capital expenditure, as well as to accelerate the disbursement of social assistance programs which will increase household consumption and recover regional economy.
During a virtual meeting on Tuesday (1/9), President Jokowi said that Indonesia’s Gross Domestic Product (GDP) still grew 2.97 percent in the first quarter of 2020 while other countries experienced a negative growth. However, Indonesia recorded a negative growth of 5.3 percent in the second quarter.
For that reason, the President said that there is still one month left in the third quarter; thus, if Indonesia’s economy is still in negative position, the country will face recession.
“Therefore, I want you to pay close attention to the report that the average budgets expenditure for provinces is at 44.74 percent, while that of regencies and cities reached 48.8 percent by 27 August 2020,” he said when giving directives to governors at a virtual Limited Meeting on COVID-19 Mitigation and National Economic Recovery, from Bogor Presidential Palace, West Java, Tuesday (1/9).
He went on to say that all can check the budget realization for goods and services expenditure, capital expenditure, and social assistance programs. He also instructed the regional heads to check budget realization for goods and services expenditure in their respective provinces.
For the record, budget realization of West Sumatra Provinces has reached 52 percent. Meanwhile, Jakarta has a quite high rate of budget realization, 78 percent for goods and services expenditure and 92 percent for capital expenditures. Therefore, the President called for a close attention to budget realization that only reached 10-15 percent, particularly the disbursement of social assistance program.
“Every day, I monitor the regional budget (APBD) realization of each province, regencies/cities. So please pay attention to the figure so that realization of goods and services expenditure, capital expenditure, and social assistance programs can be accelerated,” he explained.
Regarding the economic growth, President Jokowi added that Papua and West Papua are the provinces with the highest economic growth with 4.52 percent and 0.53 percent respectively. While the other provinces experienced a negative growth.
“The three provinces on the screen show huge contraction, such as Bali Province which is at minus 10.98 percent since tourism sector is the main economic drive of Bali so that the province’s economic growth fall sharply. Jakarta and Special Region of Yogyakarta also experienced negative growth of 8.22 percent and 6.74 percent respectively,” the President said.
On that occasion, the President expressed hope that realization of regional budgets can become the main focus of the governors. He also reminded regents and mayors of regions with low realization rate to speed up goods and services expenditure, capital expenditure, and social assistance programs.
“I need to remind you all that it is crucial for regional economic growth, as well as for maintaining people’s purchasing power and household consumption,” he concluded.
Also accompanying President Jokowi in the event were Cabinet Secretary Pramono Anung and Minister of State Secretary Pratikno. (TGH/EN)
Translated by : Rany Anjany
Reviewed by: Lulu Wuliarti