BI: Take Advantage Of Fiscal Incentives To Control Regional Inflation

Illustration (Photo: Doc. Antara)

MANADO - Head of Bank Indonesia (BI) Representative of North Sulawesi (Sulut) Andry Prasmuko said the government could take advantage of fiscal incentives to control inflation in the regions.

"This year there are four regencies and cities in North Sulawesi that have received fiscal incentives, with a total fund of Rp49.9 billion," Andry said as quoted by ANTARA, Wednesday, November 8.

Andry said the Ministry of Finance regularly provides fiscal incentives for local governments for performance category groups in the context of controlling inflation.

He said the four regencies and cities were Bitung City, South Minahasa Regency, Bolaang Mongondouw Regency and North Minahasa Regency.

Four districts and cities in North Sulawesi have received these fiscal incentives because they are considered capable of carrying out inflation control efforts, compliance in reporting daily reports, food price stability as measured through price control indexes, and accelerating spending realization specifically to support inflation control activities in the regions.

"We hope that with this fund, four districts and cities can continue to maintain stable inflation in the regions," he explained.

Head of the Directorate General of Treasury (DJPB) of the North Sulawesi Regional Office, Ratih Hapsari Kusumawardani, said that the recipients of the First Period of Fiscal Incentives (KMK 271/2023) namely Bitung City amounted to Rp11.67 billion and South Minahasa Regency amounted to Rp9.98 billion.

Then, he said, Recipients of the Third Period of Fiscal Incentives (KMK 400 of 2023), namely Bolaang Mongondouw Regency amounting to Rp9.18 billion, South Minahasa Regency Rp9.53 billion and North Minahasa Regency amounting to Rp9.54 billion.

Ratih reminded that the use of fiscal incentives for the current year's performance in Article 10 PMK 67 of 2023, namely Fiscal Incentives for current year's performance, is used to fund activities in accordance with regional priorities and needs whose benefits are received or felt directly by the community.

And, he said, it is used to support inflation control, stunting reduction, increase investment and reduce poverty.

Fiscal incentives, he said, could not fund salaries, additional income, and honorariums and official travel.