The Realization Of The Absorption Of The Low APBD, Coordinating Minister Airlangga: Triggered By The Transfer Of Funds For Handling COVID-19

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Antara)

Coordinating Minister for Economic Affairs Airlangga Hartarto said that one of the reasons for the realization of regional revenue and expenditure budget (APBD) expenditures was low because in mid-2022, the government shifted the allocation of funds for handling COVID-19 for other purposes of programs.

"There is an allocation for handling COVID-19 which can be handled relatively more, then we ask for a transfer for other programs," said Airlangga, quoted by Antara, Thursday, December 1.

In addition to transferring funds for handling COVID-19, said Airlangga, the government has also allocated fuel oil subsidies (BBM) for transportation subsidies for local governments to anticipate inflation.

The handling of transportation subsidies so that the cost of inflation rates does not increase. Yesterday we had a meeting about 15 regions whose inflation is higher than nationally," he said, without specifying the 15 regions.

However, Airlangga is optimistic that the realization of the APBD in the last month in 2022 will increase. The central government has coordinated with local governments regarding the efforts that must be made.

"Later we will encourage this December to be boosted," he said.

President Joko Widodo (Jokowi) on Wednesday, November 30, highlighted that APBD funds were still deposited in banks of up to IDR 278 trillion.

Jokowi assessed that the Rp278 trillion fund would be very large if it was only stored in a bank. In fact, if the funds are spent, it will grow the economy in the regions.

Moreover, the current global economic situation is under pressure. According to Jokowi, the fiscal stimulus in the form of funds from the APBD should be disbursed immediately to spur economic activities of the community.

"I have ordered the Minister of Home Affairs (Tito Karnavian), please check one by one what problems there are," said Jokowi.

According to Jokowi, until the end of November 2022, the total realization of regional spending has only reached 62 percent, while new central government spending is 76 percent.