Minister of Finance Sri Mulyani Indrawati encouraged local governments (Pemda) to further intensify the issuance of bonds, regional sukuk, and several other financing to accelerate the sustainability of development in their respective regions.
In addition, Sri Mulyani said that there is a need for creative and innovative financing for long-term development and structural improvements in her area, one of which is by collaborating with Regional Owned Enterprises (BUMD). This is because you cannot continue to rely solely on the transfer of the central government to the regions.
"Regions may need to get to know each other even though they are still careful how to issue bonds and regional sukuk, and develop creative financing," Sri Mulyani said at the DPD RI Committee IV Working Meeting, Tuesday, June 11.
According to Sri Mulyani, the best initial scheme to maintain the risk of creative financing can mainly be carried out by areas that have a larger Revenue Sharing Fund (DBH), so that local governments can start building regional endowment funds to be able to finance long-term financing.
"They are starting to build regional endowment funds so that they keep the budget so that it doesn't always run out, especially in terms of building long-term and structural development," he said.
Sri Mulyani conveyed this as one of the steps taken by the central and regional governments after the issuance of the Central and Regional Government Financial Harmonization Law (UU HKPD), namely in the creative financing aspect.
Meanwhile, to increase revenue, Sri Mulyani conveyed that she was focusing on improving the quality of regional taxes and levies by encouraging regions to reduce the administration and cost of tax compliance through tax restructuring and retribution rationalization.
In addition, Sri Mulyani conveyed other steps by expanding the tax collection base in a measured manner and making tariff adjustments. As well as intensifying the synergy of the government in regional tax collection and regional levies.
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Furthermore, in the aspect of spending better or spending better, Sri Mulyani emphasized that transfers to performance-based areas were achieved with several aspects. Namely with general allocation funds directed at its use for achieving regional minimum service standards.
Then with the allocation of DBH which considers regional performance. Also, incentives for good-performing regions and villages. Until, the distribution of funds from the central government is performance-based.
Then, Sri Mulyani emphasized that creative financing is an important thing because the government in implementing the current transfer policy to the regions is no longer because it is a regional right but based on the performance of the region itself.
"Regional incentives with good performance village rewards and performance-based distribution so that local governments and villages understand that transfer is not a transfer of block grants that are the right but to show their performance capabilities," he said.
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