Jokowi Sentil Anies, Ridwan Kamil, Ganjar Etc: Local Government Must Spend APBD Immediately!

JAKARTA - President Joko Widodo (Jokowi) reminded regional heads throughout Indonesia to immediately spend the regional revenue and expenditure budget (APBD) funds. This is not the first time Jokowi has previously touched on this issue at the end of March 2021.

As is known, currently there are APBD funds of IDR 182.33 trillion parked at the Regional Development Bank (BPD). This means that these funds have not been fully used by local governments (pemda).

"Yesterday I reminded you that at the end of March 2021 there was still Rp182 trillion in the provincial, district and city APBD funds which should have been spent immediately to enlarge the demand side, the consumption side," he said at the opening of the 2021 National Development Planning Conference, which was held. at the State Palace, Central Jakarta, Tuesday, May 4.

President Jokowi asked regional governments to accelerate spending, especially various forms of social assistance, are labor intensive, and encourage public spending. The goal is to enlarge the demand side.

Previously, Jokowi 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 what causes this 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. It was not decreasing, it was going up. It was up 11.2 percent. This means that we don't spend it immediately, what about regional economic growth. Do you want to increase it if the money is deposited 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, even 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 there is circulation of money in the regions. Be careful, Rp182 trillion is very big money. If this 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.