Minister Of Home Affairs Targets Realization Of The 2024 May APBD Capai 40 Percent

Minister Of Home Affairs Tito Karnavian/DOK via ANTARA HO Ministry Of Home Affairs

JAKARTA - Minister of Home Affairs (Mendagri) Tito Karnavian targets the realization of the May 2024 Regional Revenue and Expenditure Budget (APBD) to reach 40 percent.

"The strength of the area is from the APBD, we intervene. The APBD is expected to have revenue, that income in April-May has reached the target, at least it has reached 40 percent, 30-40 percent of its income, both from the center and from PAD (Regional Original Income)," Tito said as quoted by ANTARA, Monday, May 13.

For this reason, he encouraged the local government (Pemda) to accelerate the realization of the APBD. Because, based on the data it has, the realization of APBD revenue at the provincial and district/city levels as of April 30, 2024 is lower than last year.

If in 2023 in the same period it reached 23 percent, now it has dropped to 21 percent. In fact, the political situation is more stable and the economic situation is also improving.

According to him, the realization of the APBD has a major influence on the inflation rate. Regions that are less than optimal in realizing the APBD tend to experience high inflation.

The Ministry of Home Affairs also asked the local government to seriously discuss the issue internally.

"Please for the regions, these APBD (Regional Budget) problem colleagues are specially closed internally, because it is very influential (on) spending once again. High income, money has, can intervene. The spending is high, money is circulating in the community, the private sector will live and it will be very helpful to suppress inflation", he explained.

On the other hand, Tito continued, government spending has two main functions. First, increasing the circulation of money in the community, so that purchasing power strengthens and household consumption also increases.

"Household consumption is the number one contributor to building or creating economic growth figures, economic growth. If people's consumption is low, the economic growth will be low," said Tito.

The second function, government spending can encourage growth and stimulate the rise of the private sector. When shopping in low areas, it is very likely that the private sector will collapse, especially in areas where PAD relies on transfers from the central government.

However, in the realization of spending, it is also necessary to consider income. We hope that the purchase is also not far from income," he concluded.