Regional Budget Allocation Of IDR 502 Trillion, Minister Of Home Affairs Tito Targets Local Governments To Purchase Domestic Products And Services Of Up To IDR 200 Trillion

JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian hopes that the regional government (Pemda) can contribute Rp. 200.94 trillion to the affirmation of the Purchase and Utilization of Domestic Products in the Context of Proud Made in Indonesia (BBI) or Business Matching.

Furthermore, Tito said the budget came from the APBD allocation for the procurement of goods and services which reached Rp502.34 trillion set by the central government.

In more detail, the budget allocation for targeted MSME products from the provincial government can reach around Rp. 57 trillion. Meanwhile, the budget allocation for MSME products from the district or city government can reach a figure of around Rp. 143 trillion.

"From 34 provinces and at the district or city level, it is targeted to reach a figure above Rp. 200 trillion," he said at the Showcase and Business Matching Second Phase of Government Goods/Services Shopping for Domestic Products, at JCC, Jakarta, Monday, April 25.

Of this amount, said Tito, many local governments have followed up with the form of commitments made through business matching activities organized by central government agencies some time ago.

As of April 11, 2022, from these activities, local governments from various levels have committed to allocating regional procurement budgets to MSMEs. The amount is also significant, reaching Rp. 257 trillion.

"The commitment is great, the local governments who follow up have allocated a budget of 40 percent for MSME actors," said Tito.

With the large number of commitments, said Tito, the Ministry of Home Affairs is currently formulating a number of policies to ensure local governments carry out the budget allocation targets. So, in the future, we can meet this target.

At the planning stage, which is carried out during the development plan deliberation (Musrenbang), the regions must include the APBD budget allocation for MSMEs. As an emphasis, to all stakeholders that the Regional Government has allocated 40 percent of the budget to MSMEs.

In stages, Tito continued, he will supervise the provincial government which allocates 40 percent of the budget. Then, governors can supervise regional heads at the level of regents and mayors.

"One of the Musrenbang materials is the emphasis on 40 percent of expenditure on goods and services taken from the components of goods and services expenditures and capital expenditures from the APBD," he said.

The APBD is not signed if it does not attach the purchase of goods and services for domestic products

Then at the review stage, said Tito, every local government at various levels must attach a plan to purchase goods and services of at least 40 percent of the APBD. In submitting a mandatory regional budget, attach this matter.

Tito said he would ensure that the provincial government had attached a plan to use the APBD for MSME products. Meanwhile, governors must ensure that regents or mayors attach plans to use MSME products.

"I will sign if there is an attachment to the 40 percent APBD usage plan," said Tito.

At the execution stage, his party will also supervise the realization of the above budget. So, Tito continued, the achievement of the budget allocation of 40 percent for MSMEs carried out by local governments could be realized in the future. Monitoring will be carried out every 3-6 months.

That way, said Tito, it is hoped that the achievement of these numbers can be carried out consistently by the relevant regional governments. "Every three months, we will monitor the realization of the relevant government agencies," said Tito.

Finally, his party will cooperate with BPKP to ensure that the relevant local government implements a policy of allocating 40 percent of the APBD budget to MSMEs. In order to know in detail which local governments comply with these policies.

Later, as a recommendation to be used as a basis for awarding (reward) in the form of regional incentive funds and punishment (punishment) to regions that do not reach the 40 percent allocation figure.