JAKARTA - Minister of Home Affairs (Mendagri) Muhammad Tito Karnavian issued Circular Letter Number 900/833/SJ concerning Adjustment of Regional Revenue and Expenditure Efficiency in the Regional Revenue and Expenditure Budget (APBD) for Fiscal Year (TA) 2025.
The regulation, which was published on February 23, 2025, is a follow-up to Presidential Instruction (Inpres) Number 1 of 2025 regarding the efficiency of spending in the State Revenue and Expenditure Budget (APBN) and the 2025 FY APBD.
Previously, Tito emphasized that the efficiency of the budget was aimed at supporting pro-people programs.
"Sata-sata untuk kepentingan program yang lebih banyak yang berhubungi dan dinikmati langsung oleh masyarakat," kata Tito dalam keterangannya dilansir ANTARA, Senin, 24 Februari.
The budget efficiency is carried out by limiting spending on ceremonial activities, studies, comparative studies, printing, publications, and seminars/focus groups discussions. This circular also regulates a 50 percent reduction in official travel expenditures for all regional devices.
The local government is also asked to make adjustments to the 2025 FY APBD expenditures sourced from Transfers to Regions (TKD).
The savings proceeds will be diverted to the fields of education, health, infrastructure, sanitation, inflation control, food price stability, food reserves, and other priorities to improve community welfare, employment opportunities, and economic growth.
Everything is diverted to pro-people programs. For example, in the field of education, damaged schools, toilets that are not good MCK, then in the health sector, puskesmas, the standard must be good," he explained.
In the SE, regional heads are also asked to identify the efficiency of spending while still paying attention to the urgency, quality of implementation, content of substance, and benefits that are prioritized to support the achievement of eight missions or Asta Cita and the achievement of seven priority programs, as well as support the economic growth target of eight percent.
Regional heads are also asked to pay attention to the quality of spending by prioritizing the allocation of the basic expenditure budget compared to the allocation of supporting budgets according to the target and indicators of program performance, activities, and sub-activity.
The Minister of Home Affairs asked the DPRD and the public to participate in supervising the implementation of this policy to ensure that the budget was actually used for the benefit of the people.
"And we are also going through the existing system, called the Regional Government Information System, we will see those changes later," concluded Tito.
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