Sri Mulyani 'Senggol' Sri Sultan Hamengkubuwono X On Yogyakarta APBD: Lowest Expenditure Absorption In Indonesia

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani reported that the realization of APBD expenditures was still lower until September 2021.

According to the Minister of Finance's notes, APBD spending at the end of the third quarter was 2.11 percent year-on-year (yoy) to Rp603.5 trillion from the previous Rp616.59 trillion in the same period 2020.

"Some areas that have received transfers from the central government but have not spent, the largest is DIY (Yogyakarta Special Region with 20.39 percent)," he said at a press conference on our State Budget, Monday, October 25.

According to the Minister of Finance, the conditions experienced by the province led by Sri Sultan Hamengkubuwono X cannot be separated from the influence of the high distribution of TKDD (Transfers to Regions and Village Funds) which has reached 76.5 percent, but has not been followed by spending absorption.

“The difference between the level of realization of income and the lowest expenditure is in Southeast Sulawesi with minus 0.62 percent. This happens because the distribution of TKDD is still low, which is below the national average,” he said.

Meanwhile, the absorption of spending that is still not optimal will also have an impact on the high value of regional government (Pemda) deposits in banking.

To note, this year the budget allocation for Transfers to Regions and Village Funds is in the range of IDR 770 trillion. This means that more than 25 percent of the state budget expenditure, which amounts to Rp2,750 trillion, is carried out through the regional government.

"Regions need to increase the speed and accuracy of their spending," concluded Minister of Finance Sri Mulyani.