Coordinating Minister Airlangga: Application Of Transaction Electronification Can Improve Local Government Financial Management

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Source: Documentation of the Coordinating Ministry for the Economy)

JAKARTA - In the midst of the policy of restricting people's activities and mobility as well as the high demand for goods, services and public services, the digital economy has grown exponentially.

In Presidential Regulation Number 95 of 2018, President Joko Widodo has mandated the implementation of the Electronic-Based Government System (SPBE), in Good Governance, both in the Central and Regional Governments to provide excellent public services. The acceleration of the achievement of the SPBE is expected to be supported by the existence of the Acceleration and Expansion of Regional Digitization (P2DD).

In supporting SPBE, Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto said the application of Regional Government Transaction Electronification (ETPD) in regional income and expenditure transactions would improve the financial management of Regional Governments (Pemda).

"The implementation of ETPD is expected to improve local government financial management so that it is more efficient, transparent, and accountable, and in the end can increase local revenue," said Coordinating Minister Airlangga in a virtual webinar entitled Optimizing Regional Government Digital Payment Transactions, recently.

Not only that, P2DD which is in line with the SPBE has also carried out several transformations in local government financial management, improving public services, and governance. This is done through the establishment of provisions or regulations, institutions, improvement of implementation, improvement of infrastructure, and strengthening of information and data.

According to data in 2020, the value of Indonesia's digital economy reached 44 billion US dollars or grew 11 percent year-on-year (YoY) and was recorded as the largest growth in the Southeast Asia region.

This figure can continue to grow larger considering the population and the development of the use of gadgets and national means of communication. In terms of digital users, the number of mobile connections in Indonesia reached 345.3 million (125.6 percent of the total population) and internet users amounted to 212.3 million people, with a penetration rate of 76.8 percent.

In addition, as an effort by the government to take advantage of the trends and potential of the digital economy to encourage the strengthening of the national and regional economy, President Joko Widodo has issued Presidential Decree Number 3 of 2021 concerning the Task Force for the Acceleration and Expansion of Regional Digitization (Satgas P2DD).

The P2DD Task Force consisting of leaders from eight ministries or institutions will coordinate with the 542 Regional Digitization Acceleration and Expansion Team (TP2DD) chaired by the regional head.

The increase in the number of TP2DD is also in line with the increase in regional income transactions, where there is an increase in the types of taxes that are electronified from 81.6 percent in Q1 (Quarter I) 2021 to 86.2 percent in Q2 2021, as well as an increase in the types of regional levies that are electronified from 53.9. percent in Q1 2021 to 62.2 percent in Q2 2021.

Based on the results of the ETPD Index assessment in July 2021, there were 115 local governments (21 percent) in the digital category, 270 local governments (50 percent) in the advanced category, 151 local governments (28 percent) in the developing category, and 6 local governments (1 percent) in the developing category. initiation.

The initiative to establish TP2DD must be accompanied by concrete efforts to accelerate and expand regional digitization. The issuance of regional policies that support the ecosystem for accelerating the digitization of regional government transactions, including the creation of innovative public service electronification, strengthening of human resources, supporting facilities and infrastructure, as well as collaboration with various stakeholders are some of the important steps to be initiated in the early stages of forming TP2DD.

"I hope that the performance of the Gorontalo Province TPID, which three times has become the best TPID for the Sulawesi Region and also several regencies/cities as well as in the TPID Award event, can inspire all TP2DD in the Gorontalo region to improve their performance so that they are ready to take part in the TP2DD Championship event in 2022," "said Airlangga.