The Minister Of Home Affairs Asks Local Governments To Immediately Help People Affected By Inflation

JAKARTA - The Minister of Home Affairs, Muhammad Tito Karnavian, asked the local government to immediately help people affected by inflation, following the increase in the price of fuel oil (BBM).

"Our local government has asked for burden sharing, so to mutually consult to help the community, both in provinces and districts/cities", said the Minister of Home Affairs while guiding the Regional Inflation Control Coordination Meeting, reported by ANTARA, Monday, September 5.

According to him, the role of local governments is needed in the midst of various handling and assistance efforts carried out by the central government through various policies. The Minister of Home Affairs asked local governments not to hesitate to use available budget instruments to help affected communities.

The Minister of Home Affairs explained that there are several budget instruments that local governments can use to help underprivileged communities affected by inflation.

First, local governments can utilize two percent of general transfer funds, namely in the form of general allocation funds (DAU) and revenue sharing funds (DBH) to provide a social safety net.

Second, local governments can take advantage of unexpected spending (BTT) to provide social protection. Regarding BTT, the Minister of Home Affairs has issued Circular Letter Number 500/4825/SJ concerning the Use of BTT for Inflation Control in the Regions.

Third, local governments can channel aid sourced from the social assistance budget items (bansos) that are still owned by each region. Fourth, local governments can take advantage of village funds.

Then, the Minister of Home Affairs requested that after the coordination meeting the regional heads and the ranks of the regional leadership coordination forum (forkopimda), both provinces and districts/cities, immediately hold a meeting to discuss mitigating inflation control.

The local government needs to discuss the impact of rising fuel prices (BBM) as well as the efforts needed to maintain public security and order.

"Because if the Community Security and Order (Kamtibmas) is not good then the economy is disrupted, then inflation will occur in that area", said the Minister of Home Affairs.