Jakarta's APBD Shrinks After No Longer Being The Capital City, Anies' Subordinates Are Racking Their Brains Looking For Additional Regional Income

Jakartans pass by the MRT Station (Photo by Rendy Novantino on Unsplash)

JAKARTA - Head of the Regional Asset Management Agency (BPAD) DKI Reza Pahlevi explained a number of ways that the provincial government will take to increase regional income when the capital city officially moves to the archipelago, East Kalimantan.

According to Reza, Jakarta needs a new source of income. Because, after no longer carrying the status of the capital city of the Republic of Indonesia, the reduction in regional income is inevitable because a number of Jakarta residents, including the central government civil servants, have also moved from Jakarta to the archipelago.

As a result, individual and business tax payments have decreased. Not to mention, balancing funds and profit-sharing funds distributed by the central government will also experience a decline.

So far, the DKI Provincial Government has a number of plans to increase revenue. One of them is the change in the mechanism for using underground fiber optic cables (ducting) from a rental or user fee system to a profit sharing system.

So far, Reza considers the fiber optic cable retribution system to be of no benefit to the government.

"One of the most important pulse objects (regional income) is ducting. How can we get fiber optics. There is no longer playing retribution today. Retribution is not profitable. wrong," Reza told reporters on Monday, August 15.

Meanwhile, if implementing a profit-sharing system, the DKI Provincial Government will give concessions to companies that use ducting on each road for a certain period of time.

At the same time, the company can manage roads in Jakarta, both those owned by the DKI Provincial Government, as well as the 57 national roads that have been granted by the central government to the DKI Provincial Government.

"I did the HPL construction, I tendered it to the private sector and gave a 20-year concession. So, we will get (income) a permanent contribution and a profit-sharing contribution," explained Reza.

"With a note, they are obliged to maintain sidewalks. So, we can get the beauty of the city (with a ducting system), sidewalk maintenance is held by the private sector, then we get money," he continued.