President Jokowi Tells Governors to Speed Up Expenditure in Q3
Date 16 Juli 2020
Quarter 3 is a critical moment to boost the Government spending and for economic recovery, President Joko “Jokowi” Widodo has said.
“If we can’t increase spending in Quarter 3, don’t expect we can make it in Quarter 4. Our hope is only in Quarter 3, July, August and September,” the President said in his remarks to Governors at Bogor Presidential Palace in West Java province, Wednesday (15/7).
According to the President, Government expenditure is important given the recent situation that does not support investment.
“Banking loan that used to grow 12 percent, 13 percent or 8 percent, cannot be expected now. Once again, Government expenditure is important. Therefore, I hope the existing expenditure can be accelerated,” the President said.
The Government expenditure, the President added, will also increase domestic or household consumption, which declined in Quarter 2.
He also reminded the Governors that regional government’s existing cash in the bank is Rp170 trillion.
“I am now monitoring the expenditure daily. I monitor the Ministries’ expenditure daily and I know the absorption rate. I also daily monitor the expenditure of provinces, regencies and cities,” the President said.
President Jokowi also disclosed the expenditure rate for each province, namely:
- Special Capital Region of Jakarta province, 45 percent;
- West Nusa Tenggara province, 44 percent;
- West Sumatra province, 44 percent;
- Gorontalo province, 43 percent;
- South Kalimantan province, 43 percent;
- Bali province, 39 percent;
- Central Kalimantan province, 38 percent;
- Banten province, 37 percent;
- Riau Islands province, 35 percent;
- South Sulawesi province, 34 percent;
- Lampung province, 32 percent;
- West Papua province, 32 percent;
- North Kalimantan province, 31 percent;
- Bangka Belitung province, 31 percent;
- East Kalimantan province, 31 percent;
- East Java province, 30 percent;
- North Sulawesi province, 29 percent;
- Jambi province, 28 percent;
- Bengkulu province, 27 percent;
- Central Sulawesi province, 27 percent;
- Special Region of Yogyakarta province, 27 percent;
- Central Java province, 27 percent;
- Riau province, 27 percent;
- North Sumatra province, 25 percent;
- West Java province, 24 percent;
- West Sulawesi province, 24 percent;
- Aceh province, 23 percent;
- West Kalimantan province, 22 percent;
- Maluku province, 21 percent;
- East Nusa Tenggara province, 21 percent;
- North Maluku province, 17 percent;
- Papua province, 17 percent;
- Southeast Sulawesi province, 16 percent; and
- South Sumatra province, 16 percent.
The President went on to say that Government capital expenditure is the most important aspect in accelerating the economy.
“We must empower our bureaucracy to speed up the expenditure,” the President stated.
The President also ordered the National Public Procurement Agency (LKPP) to issue a circular to accelerate spending, while the Development and Finance Supervisory Agency (BPKP) has been ordered to maintain prudence. (FID/EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Muhammad Ersan Pamungkas