Ministry Of Home Affairs: Local Government Domestic Product Spending 22.62 Percent

JAKARTA - The Ministry of Home Affairs (Kemendagri) said that the realization of local government (Pemda) domestic product spending until June 11, 2022 reached 22.62 percent.

"Realization of the local government's domestic product expenditure (PDN) was 22.62 percent, so that what had not been realized was 77.38 percent according to data processed by the Government Goods/Services Procurement Policy Institute (LKPP) until June 11, 2022," said the Director General of Regional Development at the Ministry of Foreign Affairs. Domestic Affairs Teguh Setyabudi at the 2022 National Coordination Meeting for Internal Control in Jakarta, Antara, Tuesday, June 14.

In detail, the realization of domestic product spending until June 11, 2022 from 34 provincial governments was 28.30 percent, the realization of PDN in 93 cities was 17.93 percent, and the realization of PDN in 415 districts was 21.64 percent.

He said as many as 10 provinces with the highest realization of domestic product spending, among others, West Java Province at 37.64 percent, North Sulawesi 24.26 percent, East Java 21.16 percent, Central Kalimantan 21.09 percent, Central Java 20.13 percent, Aceh Province 19.61 percent, North Kalimantan 18.65 percent, DKI Jakarta 18.19 percent, West Sulawesi 17.96 percent, and DI Yogyakarta 17.64 percent.

The Ministry of Home Affairs continues to accelerate the realization of domestic product spending by encouraging allocating and implementing at least 40 percent of the budget for goods/services expenditures through e-catalogs.

The Ministry of Home Affairs, he said, will review the proposed APBD and local governments are required to attach a goods/services expenditure plan containing an attachment of 40 percent of the budget value for goods/services expenditures for the use of domestic products in the application for APBD approval.

Appendix 40 percent of the planned expenditure on goods/services for the use of domestic products will be audited and examined by the Supreme Audit Agency (BPKP) as a consideration for awarding (providing regional incentive funds) and sanctions in the form of a written warning.

Previously, President Joko Widodo was furious because central government spending, namely ministries/agencies to local governments was still dominated by imported products, although there were 842 products that could be substituted and could be purchased via e-catalog.

In his remarks at the Opening of the 2022 Government's National Coordination Meeting for Internal Supervision, President Jokowi said that there are substitute products that are produced domestically, which can replace the imported products.

"I know that many ministries, many institutions, many regional (governments) do not want to buy domestic products. The reasons are various. The specs are not right, the quality is not good. The reasons are many. There are 842 products in the e-catalog which are actually There is domestic production," said President Joko Widodo (Jokowi) at the Jakarta Presidential Palace, Antara, Tuesday, June 14.

The President emphasized that central and regional government spending must consider three important things, namely creating added value, generating domestic economic growth and thirdly being efficient.

According to the President, the government budget, both APBN and APBD which has been collected from tax payments and PNBP should be allocated for spending on domestic products that generate added value and increase economic growth.

"This is the APBN, you know. This is APBD money, you know. Buy imported products. The added value can be obtained by other countries, jobs that can be obtained by other people. Are our people stupid?," the President emphasized.