Ministry Of Finance Says 30 Percent Of The State Budget Is Used For Transfers To Regions

Rupiah illustration (Photo: dock. Antara)

JAKARTA - The government allocates funds of approximately IDR 830 trillion for transfers to regions (TKD) in 2023. The funds are taken from the 2023 State Revenue and Expenditure Budget (APBN).

The Director General of Fiscal Balance at the Ministry of Finance Luky Alfirman said this was support for the regions of approximately 30 percent of our state budget.

"Our APBN spending is given to regions in the form of transfers to the regions, this year approximately Rp830 trillion is given to the regions," Luky said, quoting Antara, Wednesday, October 18.

Luky said that currently there are 546 provincial, city and district governments, and the Rp830 trillion fund is given to the regions to carry out development.

"Our duties in the central government, local governments ensure government programs, this government spending is used as much as possible for the prosperity of the people," he said.

According to him, these funds must really be used for productive spending so that they can contribute to creating prosperity or prosperity for the community.

Luky said that the state budget is one of the instruments for the government to achieve the ideals of the Indonesian nation, namely to create a just and prosperous society.

"We want to prosper all Indonesian people in all corners of the Unitary State of the Republic of Indonesia, how? One of the instruments is the State Budget," he said.

He emphasized that the management and use of the APBN is aimed at increasing inclusive economic growth for all Indonesian people, as well as reducing poverty, inequality and unemployment, as well as creating quality employment opportunities and human resources.

State spending distributed to regions through TKD in 2022 will reach IDR 704.78 trillion. The 2022 TKD is used to improve the quality of public services in the regions, which include education, health, and infrastructure development.

Previously, the Minister of Finance of the Republic of Indonesia Sri Mulyani Indrawati said that the distribution of TKD was recorded to continue to improve by Rp503.9 trillion as of August 2023 or grew 61.9 percent compared to the same period last year.

"As of August, we saw that the realization of transfers to the regions reached Rp503.9 trillion, this means that 61.9 percent increased slightly in terms of percentage last year which reached Rp478.9 trillion. So in terms of TKD, there was an increase of 5.2 percent of the realization," said Sri Mulyani in the virtual KiTa State Budget report in Jakarta, Wednesday (20/9).

Sri Mulyani detailed that the contribution of the highest TKD distribution was recorded in the Revenue Sharing Fund (DBH) which had been realized amounting to Rp63.9 trillion. The realization of DBH increased 54.6 percent compared to the same period last year which was recorded at Rp41.34 trillion. The realization of DBH is higher due to the increase in DBH specifically for the types of Tobacco Product Excise (CHT), coal minerals (Minerba) and oil and gas (oil and gas).

"If we look at DAU, it is still a 5.1 percent contraction, which is Rp265.01 trillion, which is 5.1 percent lower than last year's Rp279.1 trillion. This DAU distribution has reached 67 percent of the total ceiling," he said.

Furthermore, the State Treasurer explained that the funds that were still experiencing problems in the distribution were Special Autonomy (Otsus) which was recorded at IDR 7.6 trillion, 27.1 percent lower than last year which reached IDR 10.5 trillion.

In addition, the Physical Special Allocation Fund (Physical DAK) also contracted IDR 17.15 trillion or -5.4 percent. In nominal terms, Physical DAK is lower because of the lower ceiling than the previous year. However, in percentage terms, the distribution increased by 32 percent.

The Village Fund (Dandes) was also recorded to have contracted -2.5 percent or Rp49.16 trillion. Dandes is slightly lower due to a decrease in the number of Beneficiary Families of Direct Cash Assistance (KPM BLT).