The Government Allocates IDR 830 Trillion For Transfers to Regions from the State Budget

The Director General of Fiscal Balance at the Ministry of Finance Luky Alfirman spoke at the Peak Final of the 2023 APBD Data Surgery Competition which was followed virtually in Jakarta, Tuesday (18/10/2023). ANTARA/Martha Herlinawati Simanjuntak

JAKARTA - Director General of Financial Balance at the Ministry of Finance Luky Alfirman said the government allocated approximately IDR 830 trillion from the State Revenue and Expenditure Budget (APBN) for transfers to regions (TKD) in 2023.

"We provide support to the regions, approximately 30 percent of our APBN, our APBN spending, is given to the regions in the form of transfers to the regions, this year approximately IDR 830 trillion was given to the regions," said Luky as reported by ANTARA, Wednesday, October 18.

At the final highlight of the 2023 APBD Data Review Competition which was attended virtually, Luky said that currently there are 546 provincial, city and district regional governments, and IDR 830 trillion in funds have been given to the regions to carry out development.

"Our job at the central government and regional governments is to ensure that government programs and government spending are used as much as possible for the prosperity of the people," he said.

According to him, these funds must really be used for productive spending so that they can contribute to creating welfare or prosperity for the community.

Luky said that the APBN is one of the instruments for the government to achieve the ideals of the Indonesian nation, namely creating a just and prosperous society.

"We want to prosper all Indonesian people in all corners of the Unitary State of the Republic of Indonesia, how do we do that? One of the instruments is the APBN," he said.

He emphasized that the management and use of the APBN is aimed at increasing inclusive economic growth for all Indonesian people, as well as reducing poverty, inequality and unemployment, as well as creating jobs and quality human resources.

State spending distributed to regions through TKD in 2022 will reach IDR 704.78 trillion. TKD 2022 is used to improve the quality of public services in the regions, which include the fields of education, health and infrastructure development.

Previously, Minister of Finance Sri Mulyani Indrawati said that TKD distribution was recorded as continuing to improve, amounting to IDR 503.9 trillion as of August 2023 or growing 61.9 percent compared to the same period last year.

"As of August, we see that the realization of transfers to regions reached IDR 503.9 trillion, this means 61.9 percent, a slight increase compared to last year's percentage which reached IDR 478.9 trillion. So in terms of TKD, there is a 5.2 percent increase in realization," said Sri Mulyani in the virtual KiTa APBN report in Jakarta, Wednesday (20/9).

Sri Mulyani detailed that the highest TKD distribution contribution was recorded in the Profit Sharing Fund (DBH), which was realized at IDR 63.9 trillion. DBH realization increased 54.6 percent compared to the same period last year which was recorded at IDR 41.34 trillion. The realization of DBH was higher due to the increase in DBH specifically for Tobacco Products Excise (CHT), coal minerals (Minerba) and oil and gas (oil and gas).

"If we look at the DAU, it is actually still contracting by 5.1 percent, namely IDR 265.01 trillion has been distributed, 5.1 percent lower than last year's IDR 279.1 trillion. This DAU distribution has reached 67 percent of the total ceiling," she said.

The State Treasurer explained that the funds that were still experiencing problems in distribution were Special Autonomy (Otsus) which was recorded at IDR 7.6 trillion, 27.1 percent lower than last year which reached IDR 10.5 trillion.

Apart from that, the Special Physical Allocation Fund (DAK Physical) also experienced a contraction of IDR 17.15 trillion or -5.4 percent. In nominal terms, the Physical DAK is lower because the ceiling is lower than the previous year. However, in percentage terms, distribution has increased by 32 percent.

Village Funds (Dandes) were also recorded as experiencing a contraction of -2.5 percent or IDR 49.16 trillion. Dandes is slightly lower due to a decrease in the number of families receiving direct cash assistance (KPM BLT) benefits.