JAKARTA Minister of Finance (Menkeu) Sri Mulyani expressed her appreciation for the performance of the local government (Pemda) which is now increasingly spurring spending in the APBD.

According to him, this is quite important in accelerating the economy in the region.

"We know that a third of the APBN expenditure is transferred to the regions and this is very important in supporting the economy," he said at the 2023 Indonesia Economic Outlook seminar on Wednesday, December 21.

According to the Minister of Finance's records, before the close of the 2022 fiscal year, the regional government continues to spur a number of important expenditures, especially those that have a significant impact on efforts to maintain people's purchasing power.

"Until last November I saw that the local government's capital expenditure was already higher than spending on goods, that's good," he said.

As for social spending, it is quite low because most of the allocations of social assistance funds have been handled directly by the central government.

"This has been taken over by the center which yesterday made subsidies, compensation, and social assistance which amounted to more than Rp500 trillion," he said.

VOI noted that until December 14, 2022, the distribution of transfers to regions (TKD) experienced a growth of 1.9 percent year on year to Rp749.7 trillion or the equivalent of 93.2 percent of the budgeted ceiling.

The score is higher than the same period in 2021 with a value of IDR 735.7 trillion or 92.5 percent of the total funds prepared.

Meanwhile, local government capital expenditures grew 15.6 percent in the form of installation procurement, props expenditure, agricultural spending, road spending, bridges and networks.

Meanwhile, spending on goods and services grew 6.8 percent which was realized in the form of official travel spending, maintenance spending, and others.

"We will continue to improve the quality of spending that is not only in terms of size, but how to really ensure that spending is maintained for things that can have a strong economic impact," said Minister of Finance Sri Mulyani.

For information, in the 2022 State Budget (according to Presidential Decree 98/2022) the government allocates TKD funds of IDR 804.8 trillion.

This amount is about a third of the total state expenditure in the same year with a value of IDR 3,106.4 trillion.


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