Dedi Mulyadi's Rp2 Trillion Debt Spotlighted, West Java DPRD: Don't Be a Lighthouse Project

West Java Governor Dedi Mulyadi (ANTARA)

BANDUNG - Deputy Chairman of the West Java DPRD, Iwan Suryawan, asked for a transparent explanation from Governor Dedi Mulyadi regarding the regional loan plan of Rp. 2 trillion submitted by the West Java Provincial Government.

According to Iwan, the decision to borrow is a big step that has a long-term impact on the Regional Revenue and Expenditure Budget (APBD), so it must be planned carefully and open to the public.

"Every rupiah borrowed by the government is a burden that will ultimately be borne by the public through future regional budgets. Therefore, transparency regarding interest and loan terms must be opened to the public through the legislative forum," said Iwan in his statement, Monday, March 2.

He highlighted that although the loan funds are planned for infrastructure development and other urgent programs, the government needs to ensure that the project really touches the root of the problem, not just a symbolic project.

"Don't let this development become a lighthouse project that doesn't solve the root of the systemic congestion problem. Without synchronization with the City Government or the Regency Government, the construction of new roads risks creating new congestion points," he said.

The PKS politician also reminded of the potential risks due to the fluctuating global economic conditions, especially related to loan interest rates. He asked for assurances that debt-financed projects were able to directly boost local economic growth.

"I ask for a guarantee that the implementation of this project involves qualified local contractors so that the circulation of money remains in West Java. In addition, there needs to be a digital monitoring system so that the public can monitor the physical progress in a participatory manner in order to minimize budget leakage," he explained.

Regarding fiscal sustainability, Iwan emphasized that debt installments should not sacrifice basic service sectors such as education and health.

"The education and health sectors must not experience budget cuts to pay off the debt. The government must have a clear exit plan strategy. I don't want West Java to be trapped in a cycle of digging holes and covering holes that disrupt the stability of the APBD for the next decade," he said.

He added that the DPRD would carry out strict oversight functions every three months, covering the absorption of the budget to the quality of work in the field.

The DPRD also asked for a technical explanation regarding the debt-to-local revenue ratio and compliance with the deficit limits set by the Ministry of Finance of the Republic of Indonesia.

"The DPRD's support for regional loans must comply with applicable laws and regulations and consider the financial capacity of the region in returning loans. The government must be able to prove that every penny of the loan really increases the productivity of the people of West Java," he concluded.