JAKARTA - Minister of Home Affairs (Mendagri) Muhammad Tito Karnavian asked the local government (Pemda) to replace the head of the regional revenue service (kadispenda) if the local revenue (PAD) did not increase.
"If the income is lacking, that's the task of the Kadispenda. The Kapenda is unable to increase revenue, replace it," Tito said at the 2025 Development Planning Technical Coordination Meeting (Rakortekrenbang) which was held online as reported by ANTARA, Wednesday, March 12.
The Minister of Home Affairs conveyed the warning because he received information that there were still local governments who were not efficient in using their budgets.
Tito explained that increasing PAD is needed so that the local government budget does not depend on the central transfer.
Most of the areas have low fiscal capacity, dependence. We know that the low calculation is from the ratio between central transfer and regional income," he said.
The Minister of Home Affairs explained that currently there are more than 400 regions with low fiscal capacity. In fact, he said, there are areas that depend on central transfers, and 60 percent of the budget is only for personnel spending.
"(The budget) reaches the community 30-40 percent, and even then there will be another legal problem, there will be negative practices, so that those who reach the community may only be 20-25 percent," he explained.
According to Tito, if this happens, there will be no changes in the regions. Then, poverty alleviation does not have a significant impact.
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The Minister of Home Affairs also asked the local government not only to focus on spending and not to think about increasing PAD.
"Regional data, in the APBD (regional income and expenditure budget), for food and drink of Rp. 51 billion, means that for 12 approximately Rp. 4 billion per month. Then, the official trip is Rp. 250 billion. Well, that's one of them," he said.
"I said it's not much. There are some areas where (budgets) eat and drink more than Rp. 1 trillion," said Minister of Home Affairs Tito.
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