Sri Mulyani Colek Khofifah, The Highest East Java Ngendon Fund In Indonesia Rp29 T: Don't Stop At Deposits

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani reported the realization of the use of local government funds (pemda) that had been transferred by the central government. In the presentation, the Minister of Finance highlighted the issue of the regional government depositing funds in banks which are still considered quite large, one of which is East Java (Jatim).

According to the Minister of Finance, the region led by Governor Khofifah Indar Parawansa recorded the highest regional government savings in Indonesia.

"We see once again that East Java always holds the highest balance in terms of funds in its BPD (regional development bank), which reaches Rp. first semester of 2022.

The Minister of Finance added that the overall record of local government deposits in banks has continued to show an increase since the beginning of the year. He revealed that the total balance of all local governments reached Rp220.95 trillion.

“This is the highest in the last six months. This condition brings a dilemma because if the (central) government wants to make a very fast transfer, it should not only stop at bank deposits,” he said.

Meanwhile, the lowest deposits were recorded by the Riau Islands region, which amounted to Rp. 1.17 trillion.

"We hope that the acceleration of the regional government in the second semester, in terms of spending, will be accelerated and help rebuild regional economies," he stressed.

Meanwhile, the value of transfers to regions (TKD) until the close of the first half of 2022 is known to be IDR 333.1 trillion. This figure decreased by 1.8 percent when compared to the same period in 2021 with IDR 346.6 trillion.