Sri Mulyani: Regional Development Doesn't Have To Depend On The APBD And APBN

Minister of Finance Sri Mulyani (Photo: Antara)

Minister of Finance (Menkeu) Sri Mulyani Indrawati also encouraged regional heads to innovate in financing development because local governments (Pemda) do not have to fully depend on the State Revenue and Expenditure Budget (APBN) or the Regional Revenue and Expenditure Budget (APBD).

This was conveyed when he was a speaker at the Regional Head Briefing Retret in the Military Academy (Akmil) Tidar Valley, Magelang, Central Java.

"In many countries, building various infrastructures is not always 100 percent of the APBD or APBN, because if you want to wait for the APBD or APBN, it can take a long time," he explained in his statement, Monday, February 24.

Sri Mulyani explained, there are many financing schemes that can be collaborated with various parties including the private sector and also appreciate the local government for being creative in financing development because this step requires commitment from stakeholders.

However, Sri Mulyani emphasized that if infrastructure development only relies on the APBD and APBN, the process will take a long time because the development will depend on the state's financial condition.

Furthermore, Sri Mulyani said that there are various infrastructure development sectors that can be collaborated with innovative financing schemes.

According to him, as long as the development can generate income, innovative financing can be done such as providing clean water, waste management, and hospital services.

"It can actually be built by the private sector with creative financing instruments," he said.

Sri Mulyani conveyed that the Ministry of Finance (Kemenkeu) has made various instruments to produce creativity in development financing, therefore infrastructure development can still be carried out by the regions even though the number of APBDs is limited as long as they want to innovate.

"But indeed it takes a lot of hard work, commitments, and also expertise from a financial perspective," he said.

Sri Mulyani emphasized that local governments are hesitant to carry out financing creativity in order to consult with related parties, including the Ministry of Finance, the Ministry of Home Affairs (Kemendagri), and law enforcement officials.

Therefore, he assured the local government not to worry, during the steps taken to support development.

"If you really want to build something create growth, create growth, job opportunities, improve welfare, I think we can all work," he said.

Sri Mulyani hopes that the retreat held by the Ministry of Home Affairs will be a momentum for regional heads to communicate with each other, as well as see instruments that can be collaborated with each other.

He added that his party will continue to support regional heads so that they can work well in developing their respective regions.

"The Ministry of Finance will continue to support so that ladies and gentlemen succeed in protecting the region, building regions, using the finances of the APBD and APBN, state finances properly as an important instrument in advancing Indonesia," he said.