President Jokowi: Spend Budget in Productive Areas

President Jokowi, accompanied by Vice President Jusuf Kalla, marks the closing of the 2016 National Development Planning Conference (Musrenbangnas), at the State Palace, Jakarta (11/5)

President Joko ‘Jokowi’ Widodo on Wednesday (11/5) morning at the State Palace, Jakarta officially closed the 2016 National Development Planning Conference (Musrenbangnas). In his remarks, President Jokowi mentioned three main points that require attention from the Governors around the country attending this event.

The three points are related to increasing capital expenditures, more focused planning, and brand strengthening of a region.

“Firstly, I want to remind all that at the end of December 2015, Rp90 trillion of the Regional Budget (APBD) were still stored in banks, particularly in Regional Development Banks (BPD). However, at the end of April 2016, the amount increased to Rp220 trillion,” President Jokowi explained.

Furthermore, President Jokowi also reminded all to immediately spend the budget and realize it in their regions.

“The amount is huge. We painstakingly collect this huge amount of budget every month and then transfer it to the regions (cities, regencies, and provinces). However, rather than spending it, the budget is kept as deposits in banks,” President Jokowi added.

Four months ago, the President added, he has already instructed Minister of Finance to convert regional budget in the regions that keep huge amount of budget into bonds, so that the money could be spent.

“I will announce the regions that deposit huge amount of budget in banks if they still have no used the budget,” President Jokowi firmly said while asserting that he already gave warning to the regions last year.

According to the President, Rp220 trillion of budget can be invested in productive activities. “(It) cannot be spent on goods expenditures that do not have productive value, nor for official travel, working visits, purchase of official cars, and other related areas,” President Jokowi said.

On the occasion, President Jokowi also insisted on minimizing and eliminating that kind of mistake .

“Once again, Rp 220 trillion is a huge amount. The budget must be spent immediately in productive areas, which will boost economic growth in regions,” the President said.

“Moreover, the price of commodities and export quantity in some regions drops. The trigger is indeed the APBD at province, regency, and city levels. However, many regions do not implement it,” President Jokowi added.

Accompanying the President in the event were Vice President Jusuf Kalla, Minister of National Development Planning (PPN)/ the Head of National Development Planning Agency Sofyan Djalil, Minister of Home Affairs Tjahyo Kumolo, Minister of Education and Culture Anies Baswedan, Minister of Research, Technology, and Higher Education Mohamad Nasir, Minister of State Apparatus Empowerment and Bureaucratic Reform Yuddy Chrisnandi, Minister of Religious Affairs Lukman Hakim Saifuddin, and other Working Cabinet Ministers. The event was also attended by heads of state institutions and the governors in Indonesia. (RMI/EN) (RAS/EP/YM/Naster)