Local Government Savings Parked At Banks Get Fatter, June's Note Reaches IDR 220 Trillion!

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani revealed that the number of regional government deposits (Pemda) placed in banks was still increasing. According to him, the June 2022 period will be the highest this year with a value of Rp220.9 trillion.

Previously, the trend of increasing deposits has been seen since the beginning of 2022, which at that time was only Rp. 157.9 trillion in January.

"The position of regional government funds in banks in June this year increased by Rp. 20.1 trillion, or about 10 percent from May's record of Rp. 200.7 trillion," he said at a press conference on the state budget in the middle of this week.

According to the Minister of Finance, when compared to June 2021, this value shot up to IDR 30.8 trillion or grew 16.2 percent from the previous IDR 190.1 trillion.

"One of the reasons for the increase in the balance of regional government funds in banks is that the realization of regional expenditures has not been optimal until June 2022," he said.

To note, the distribution of transfers to regions (TKD) up to the first half was stated at Rp333.1 trillion. This figure is equivalent to 45.2 percent of the total TKDD 2022 budget as stated in Presidential Regulation 98 of 2022.

Meanwhile, the highest regional government savings are in the East Java region with the amount reaching Rp29.8 trillion. Meanwhile, the regions with the lowest banking balances were in the Riau Islands, which amounted to Rp1.1 trillion.

"We hope that the acceleration of the regional government in the second semester, in terms of spending, will be accelerated and help rebuild regional economies," said Minister of Finance Sri Mulyani.