Already Transfer Rp552.6 Trillion, Sri Mulyani Asked The Local Government To Help The Community Over The Ascension In Prices

Minister of Finance (Menkeu) Sri Mulyani Indrawati stated that the distribution of transfers to the regions (TKD) until September 2022 was IDR 552.6 trillion, equivalent to 68.7 percent of the provided ceiling.

According to him, the number of bodies is 2.1 percent when compared to the same period the previous year (year on year/yoy) with Rp541.47 trillion.

"Most types of TKD have experienced an increase in distribution performance due to better local government compliance (Pemda)," he said in a written statement quoted by the editor on Sunday, October 23.

The Minister of Finance explained that the distribution of profit-sharing funds (DBH) was higher because the distribution of overpayment of DBH 2021 had been partially disbursed amounting to Rp. 12.3 trillion and the distribution of regular DBH for FY 2022 amounting to Rp. 51.6 trillion which was higher than 2021 of Rp. 40.6 trillion.

Meanwhile, the general allocation fund (DAU) experienced an increase in the realization of 1 percent, reaching Rp309.3 trillion or 82 percent which had been absorbed.

Meanwhile, physical special allocation funds (DAK) reached Rp25.39 trillion, an increase of 23 percent compared to last year.

On the other hand, non-physical DAK and regional incentive funds (DID) show a declining distribution performance.

"The decline in non-physical DAK is mainly due to the declining cost of health operations in line with the better control of the COVID-19 pandemic. Then the operational costs of schools that have not been properly absorbed with a total of IDR 850 billion in 216,505 schools," he said.

Furthermore, the state treasurer revealed that the verification of the BOS funds for the 2020-2021 period seems to be overpayment must be completed.

This is why unphysical DAK looks declining. This is because we are strengthening its governance," he said.

Then, mandatory spending for regions in the context of handling the impact of inflation in 2022 is also considered not in line with expectations. The Minister of Finance encourages regional commitments to use Rp3.5 trillion in budget to help the community, in fact, only Rp277 billion has been realized.

In detail, he described Rp105.3 billion from Rp1.72 trillion for social assistance from the budget, Rp69.4 billion from Rp665 billion for job creation, Rp40.5 billion from Rp328.9 billion for subsidies in the transportation sector, and Rp62.5 billion from Rp791.2 billion for other social protection.

"So this is a budget of IDR 3.5 trillion from local governments that should be able to be used, especially to help our people who still feel a heavy burden due to the pressures of rising prices that occur globally," concluded the Minister of Finance.