President Jokowi Orders to Begin Development Projects in January

President Jokowi accompanied by Vice President Jusuf Kalla and Minister of Finance handed over the 2016 Budget Implementation Entry List (DIPA) to the Governor of West Java Ahmad Heryawan, at the State Palace, Jakarta, on Monday (14/12) morning

President Joko “Jokowi” Widodo, accompanied by Vice President Jusuf Kalla, handed over the  2016 Budget Implementation Entry List (DIPA) and gave the Village Incentive Fund (DID) to several regions with achievement at the State Palace, Jakarta, on Monday (14/12) morning.

The handover of the 2016 DIPA is a beginning of a series of the 2016 State Budget (APBN) implementation process which has been approved by the House of Representatives (DPR) and the Government in last October.

The program is expected to accelerate the process of development implementation, budget disbursement, as well as make it fast and even and give a stronger multiplier effect to the economy.

In his remarks, President Jokowi said that according to the agreement between the Government and the DPR, State Expenditure in the 2016 APBN has been set at Rp 2,095.7 trillion or increased by 5.6 percent compared to the 2015 Revised State Budget (APBNP).

“Therefore, I have asked for the implementation of several programs which have been planned to be executed in 2016 to immediately begin. The implementation will begin in January, it should not be delayed. If the schedule postponed, there going to be a contraction in the economy,” President Jokowi said.

According to President Jokowi, from Rp 2,095.7 trillion of the total of APBN, as much as 37.4 percent or about RP 784.1 trillion is allocated through the ministries and institutions.

Then, as much as 36.7 percent or about Rp 770.2 trillion is allocated for the regions and villages fund.

Meanwhile, the rest of the budget, or 25.8 percent or about Rp 541.4 trillion is allocated through the Ministry of Finance as the State General Treasurer.

“The DIPA is already handed over. I hope the programs could be implemented immediately so that the budget will not pile up by the end of the year. The old pattern in our bureaucracy, such as budget that piles up in November-December must be ended. We must stop it. When the implementation begins in January, I hope the budget could be evenly spent throughout the year,” President Jokowi asked.

The President asserted to all ministries, institutions and regional heads, that he will keep monitoring all regions with low budget absorption and regions that the funds is still pile up in the Provincial Administration-Owned Enterprises (BUMD)’s banks.

Therefore, the President hopes to conduct the auctions of project and activities in 2016 immediately, to make the development run effectively.

In the meantime, Minister of Finance Bambang Brodjonegoro in his report said that the allocation of the spending of Ministries and state institutions  has considered the basic needs of Government management and services to the people.

Therefore, the Minister added, it is already included the budget to carry out the development priority program that lies in three dimensions of development, namely human development dimension, superior sector development dimension, and regional-related equalization dimension.

Meanwhile, the Government is also committed to implementing the efficiency policy on operational spending and the enhancement of non-operational spending, including official travel management, consignment, and rent/leasing policy for operational service vehicles,” the Minister of Finance said.

Along with the hand over of the 2016 DIPA, President Jokowi also conferred awards to 66 role model regions that received Village Incentive Fund (DID).

They include 7 provinces, 48 regencies and 11 cities.

The regions that received the bestowal are based on several criteria, namely first, Financial Reports by Regional Authorities (LKPD) in 2014 get financial statement as Unqualified Opinion (WTP) from the Supreme Audit Agency (BPK) at minimum, second, they set APBD regional regulations (Perda) right in time, and third, they meet the minimum limit of performance value which has been set in the 2016 allocation calculation.

The regions which received the awards and Village Incentive Fund (DID) are: West Sumatra Province, West Sulawesi Province, Kaur Regency Bengkulu Province, Jombang Regency East Java Province, Lamandau Province Central Kalimantan, Jayapura Regency Papua Province, Kendari City Southeast Sulawesi Province.

Attending the event were the Heads of State Institutions, Working Cabinet Ministers, Governors, Regents, and Mayors. (FID/RAH/OJI/ES) (RAS/EP/YM/Naster)