“Spend Regional Budget Immediately,” President Jokowi Says

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 4 Agustus 2016
Category: News
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President Jokowi gives directives at the 7th National Coordination Meeting on Regional Inflation Control Team (TPID) on Thursday (4/8), at Grand Sahid Jaya Hotel in Jakarta

President Joko ‘Jokowi’ Widodo instructed governors, regents, and mayors to start spending the regional budget (APBD), be it provincial, regencies, or cities budget as early as possible or in January.

“Spend the budget as early as possible because it will increase the flow of money and improve economic growth in cities, regencies, or provinces,” President Jokowi said at the 7th National Coordination Meeting on Regional Inflation Control Team (TPID) on Thursday (4/8), at Grand Sahid Jaya Hotel in Jakarta.

“The regional budget in regencies, cities, and provinces in May was Rp246 trillion. It is such a huge amount. If the money has been circulated, it will improve our economy,”  the President added.

The budget in June indeed decreased from Rp246 trillion to Rp214 trillion. However, the President still considered budget exceeding Rp200 trillion as a big amount. Therefore, the President asked Regional Inflation Control Team (TPID) to be careful.

President Jokowi asserted that the delay in budget realization must be stopped. “It must be stopped, and the budget must be spent immediately. Otherwise, there is no flow of money in the regions, and it will be worse for the regions that do not have strength in its private sector. Thus, do not delay it anymore, spend the budget immediately, and hold an auction,” the President firmly said.

On that ocassion, President Jokowi mentioned the regions with low budget absorption but have huge amount of budget kept in the banks.

“Jakarta indeed has a huge budget, but the money kept in the banks is huge as well. It must be spent because there is Rp13.9 trillion of budget kept in the banks,” the President stated.

The second regions with low budget absorption right after Jakarta is West Java Province with Rp8.034 trillion, followed by East Java with Rp3.9 trillion, Riau with Rp2.86 trillion, Papua with Rp2.59 trillion, East Kalimantan with Rp1.57 trillion, Banten with Rp1.52 trillion, Bali and Aceh with Rp1.4 trillion. “Those are the top 10 regions with low budget absorption that keep huge budget in the banks,” the President said.

Besides these provinces, it is the list of regencies with low budget absorption; Bogor with Rp1.9 trillion, Bandung with Rp1.6 trillion, Bekasi with Rp1.5 trillion, Tanah Laut with Rp1.3 trillion, Kediri with Rp1.39 trillion, Berau with Rp1.37 trillion, Mimika with Rp1.37 trillion, and Nias with Rp1.31 trillion.

“Please, spend the budget immediately so there is flow of money in the society, but you must still follow the procedures,” the President asked.

Meanwhile, the cities with low budget absorption are Medan with Rp2.27 trillion, Surabaya with Rp1.85 trillion, Tangerang with Rp1.63 trillion, Cimahi with Rp1.52 trillion, Depok with Rp1.31 trillion, Semarang with Rp1.13 trillion, Magelang with Rp1.1 trillion, South Tangerang with Rp1.03 trillion, Serang with Rp948 billion, and Mojokerto with Rp917 billion.

“Minister of Finance told me to reveal the data, so I did,” the President said.

President Jokowi reminded all that the Government will issue the debt paper if there is no change. “If the budget still not yet spent well, and they do nothing, more debt papers will be issued,” the President said.

The Coordination Meeting was also attended by Coordinating Minister for the Economy Darmin Nasution, Coordinating Minister for Political, Legal, and Security Affairs Wiranto, Coordinating Minister for Maritime Affairs Luhut B. Pandjaitan, Governor of Bank Indonesia Agus Martowardjojo, Minister of Finance Sri Mulyani Indrawati, Minister of Home Affairs Tjahjo Kumolo, Cabinet Secretary Pramono Anung, Speakers and members of Indonesian House of Representatives, Governors, Regents, and Mayors from all over Indonesia. (DNA/OJI/ES) (RAS/MMB/YM/Naster)

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