The Ministry Of Finance Gives Fiscal Incentives Of IDR 340 Billion For Regions That Successfully Control Inflation

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

The Ministry of Finance (Kemenkeu) has again provided fiscal incentives of Rp340 billion to 34 outstanding regional governments, namely 3 provinces, 6 cities, and 25 regencies, for the performance category group in the context of controlling regional inflation in the 2023 Fiscal Year.

Minister of Finance (Menkeu) Sri Mulyani Indrawati hopes that local government leaders will be able to use this fund to support performance improvements.

"Because if the performance is good, not only ladies and gentlemen who are cool, the area is cool, the people also really appreciate it," said Sri Mulyani at the Inflation Control Coordination Meeting at the Ministry of Home Affairs, Monday, November 6.

The woman who is often called Ani conveyed that this fiscal incentive in the end is to improve public trust that the state is present and represented by regional leaders.

Sri Mulyani said that fiscal incentives for controlling regional inflation in the third period of the 2023 Fiscal Year were given based on the Decree of the Minister of Finance (KMK) Number 400 of 2023.

The regions are assessed based on a number of categories, including the implementation of inflation control efforts, compliance in reporting daily reports, food price stability as measured through price control indexes, and the acceleration of spending realization specifically to support inflation control activities in the regions.

"Of course we hope that the incentive allocation will continue to be used by ladies and gentlemen to continue to improve the performance of these regions, in dealing with inflation, dealing with stunting, dealing with extreme poverty and continuing to use their APBD for domestic products or MSMEs around ladies and gentlemen," he said.

Sri Mulyani hopes that with fiscal incentives, the local government can further spur local governments to consistently accelerate the realization of spending, boost the use of PDN, maintain price stability and availability of goods supply.

That way, Sri Mulyani said economic activities in the regions could be more stretched and the transfer policy to this area was also one of the government's policies in optimizing the performance of the Revenue and Expenditure Budget (APBN) as a shock absorber.

Previously, incentives of Rp330 billion were given to 24 districts, 6 cities, and 3 provinces that succeeded in controlling inflation in the II period.

Meanwhile, in the first period there was also an incentive of Rp330 billion and given to 24 districts, 6 cities, and 3 provinces.

In each period, there are different areas as recipients of incentives for the performance category in the context of controlling regional inflation.

According to Sri Mulyani, this is one of the signs that the competition for each region to be able to excel in controlling inflation is going well.

"Cooperation between the government and local governments in controlling inflation needs to continue to be improved, especially in an effort to deal with global risks and uncertainties by the end of 2023 and 2024," he said.