As A Result Of COVID-19, DKI's Revenue Has Dropped 46 Percent

Illustrations (Irfan Meidianto / VOI)

JAKARTA - The DKI Jakarta Provincial Government has reduced the projected regional revenue to 46.35 percent of the 2020 DKI Regional Revenue and Expenditure Budget (APBD) which was set at the beginning of the year.

Initially, DKI's revenue until the end of 2020 reached IDR 87.95 trillion. However, due to the corona virus pandemic or COVID-19, regional income was lowered to Rp.47.18 trillion or around 53.65 percent of the initial target.

In detail, the original regional income, which was originally predicted to reach Rp. 57.56 trillion, has now been changed to Rp. 26.42 trillion or around 45.91 percent of the initial target. The income is in the form of taxes, levies, and the results of wealth management.

Then, the balancing fund, which was originally predicted to reach Rp. 21.61 trillion, has now been changed to Rp. 16.91 trillion or about 78.26 percent of the initial target. Then, other income in the form of grant income, as well as adjustment funds and special autonomy which was originally predicted to reach Rp. 3.1 trillion, has now been converted into Rp. 2.4 trillion or around 79.69 percent.

Furthermore, financing receipts, which were originally predicted to reach Rp. 5.76 trillion, have now been converted into Rp1.44 trillion or around 25.04 percent of the initial target. This income is in the form of excess use of the previous fiscal year's budget and regional loan receipts.

Deputy Chairman of the DKI DPRD Abdurrahman Suhaimi said the cause of the reduction in revenue projections was because the DKI Provincial Government allocated another budget specifically for handling the COVID-19 outbreak.

"If this is an emergency, there is a budget that is directed to focus on COVID-19. Then, there will be a reduction or relaxation of taxes so that income will decrease," Suhaimi told reporters, Wednesday, May 6.

In addition, the Large-Scale Social Restriction (PSBB) policy resulted in a weakening of the economy in each region. This is because people are required to work, go to school and worship in their respective homes.

As a result, people's purchasing power has decreased so that many companies have been forced to go out of business and no longer pay taxes as regional income.

"There are a lot of taxes that don't come in because they stop operating, for example hotels, entertainment venues, and other taxes, which are generally reduced," he said.

Sacrifice other activities

If the projected revenue decreases, the DKI Provincial Government will automatically have to sacrifice other regional activities as a rationalization for the 2020 APBD to focus on dealing with the COVID-19 pandemic.

This year, the regional performance allowance is reduced by 50 percent, official transport fees are eliminated, the Bapenda income increase allowance is eliminated, and the septic tank budget of Rp10 billion is eliminated.

In addition, there is a reduction in food subsidies by up to 50 percent. Then, subsidies for public transportation such as Transjakarta, LRT, and MRT are reduced by 50 percent.

"The reduction has been very significant. The DPRD budget has also been reduced. The council has no kunker and recess (down to the electoral districts)," said Suhaimi.