Minister Of Home Affairs Tito Surprised, These 10 Provinces Keep Regional Cash Deposits In Banks Up To Trillions

Minister of Home Affairs Tito Karnavian (Photo: Instagram: @titokarnavian)

JAKARTA - The Minister of Home Affairs, Tito Karnavian, has asked the governors of ten provinces for clarification for keeping regional treasuries in banks with very large nominal amounts of up to trillions of rupiah.

The ten regions are considered to have a fairly high amount of savings in banking, namely DKI Jakarta Province with deposits of Rp. 12.95 trillion, Aceh of Rp.4.42 trillion, Papua of Rp.3.82 trillion, East Java of Rp.2.75 trillion.

Then, West Java Province deposits amounted to IDR 2.56 trillion, East Kalimantan was IDR 2.07 trillion, West Papua was IDR 1.94 trillion, Riau was IDR 1.42 trillion, North Sumatra was IDR 1.12 trillion, and Central Java was IDR 1.02. trillion.

“(We) want to get input for clarification from fellow governors. We deliberately invited ten governors because this is what we see, the data are relatively the largest of the 34 provinces," said Tito in his statement, Monday, December 25.

Tito said he was surprised by this. This is because regional treasury deposits in the banking sector reduce the realization of spending and it seems that there are funds that are not moving (idle), moreover there are funds that are deposited.

Tito also questioned whether the savings would be spent until the end of the year, and whether the savings were intended for SiLPA or other purposes. Therefore, Tito asked the regional government to speed up a coordination meeting regarding regional cash savings in banks. The results of the meeting can be used as a guide for district/city governments in carrying out their budget absorption.

"We ask fellow governors to immediately hold a coordination meeting on the acceleration of spending, then also clarify local government fund savings in regencies/cities in the province," he said.

Based on data obtained by the Ministry of Home Affairs from Bank Indonesia, the total cash deposits of all provinces in banks were recorded at IDR 203.95 trillion as of November 30, 2021. In details, IDR 144.96 trillion in demand deposits, IDR 54.38 trillion in time deposits, and IDR 4.6 trillion in the form of savings.