IDR 182 Trillion APBD Funds Parking At BPD, Jokowi 'Spray' Tito Karnavian: Tell The Local Government To Spend It Immediately!

JAKARTA - President Joko Widodo (Jokowi) has asked local governments to immediately spend the Regional Revenue and Expenditure Budget (APBD). Jokowi said that the APBD expenditure was still not large because the funds were not spent but parked at the regional development bank (BPD).

"This is the reason to put the brakes on the rate of economic growth here. Be careful, at the end of March I saw that there were IDR182 trillion in regional banking. Not getting down, going up. Up 11.2 percent. This means that we don't spend it immediately, how can regional economic growth go up? if the money is kept in a bank ?, "he said, while giving direction to all regional heads at the State Palace, Jakarta, quoted on Thursday, April 29.

Jokowi said that the highest spending figures at the regional government (Pemda) level only occurred for personnel spending. However, that is only around 63 percent. Meanwhile, capital expenditure per March was only 5.3 percent. In fact, he said, the circulation of money in an area will greatly determine economic growth.

Therefore, said Jokowi, he had instructed the Minister of Home Affairs (Mendagri) Tito Karnavian to remind all regional heads to immediately spend the APBD, both on personnel and capital expenditures.

"This is urgently needed so that money is circulating in the regions. Be careful, Rp182 trillion is a very large amount of money. If it is immediately spent, the money will rotate in society which will affect economic growth which is not small," he said.

In addition, Jokowi said that social protection programs are important to be distributed immediately. Including direct cash assistance (BLT) for village funds provided by local governments.

"So immediately disburse the village BLT. Because what I saw as of last April that only 32 percent had been distributed. It's still very small. 32 percent, only Rp1.5 trillion. I always follow figures like this," he said.

Previously, President Jokowi said that the current national economic conditions and situation had begun to return to a normal position. The economic recovery, said Jokowi, is also in line with the decline in the rate of transmission of COVID-19 and the reduction in the number of daily positive cases that have occurred in the last two months in the country.

"It can be seen this March, April, the economy is almost back to its normal position," he said.

Jokowi said the national economic growth target in the range of 4.5 to 5.5 percent could be achieved. However, he said, it really depends on economic activity in the second quarter of this year.

"And it starts very much depending on economic growth in the second quarter of 2021. What does this mean, April, May, June is very, very decisive," he said.

The former governor of DKI Jakarta said that if the development of the COVID-19 case could be suppressed without causing shocks to the economy, then the economic growth target of 7 percent must be achieved.

"If that can be achieved, God willing, we will make it easier in the next quarter. Why are we optimistic? Because it is obvious that now factories, industries and manufactures are already moving," he said.