JAKARTA - Minister of Home Affairs (Mendagri) Muhammad Tito Karnavian encourages regional heads (pj) to increase local revenue (PAD) in their respective regions to support the implementation of various regional programs.
"Please make sure the income is on target, if necessary to exceed the target. That's extraordinary. Then, spend so that there is money in circulation," Tito said as quoted by ANTARA, Friday, June 9.
He conveyed this when attending the Coordination Meeting for Acting Regional Heads in the Conclusion of Increasing Continuity in the Implementation of Regional Government Implementation and Public Services as well as the Implementation of National Strategic Policies in the Regions.
In addition to supporting the implementation of various regional programs, Tito added that increasing local revenue can also make related regions not affected by fiscal dynamics at the central level so that the regions become more independent.
Tito conveyed that to increase local revenue, regional heads must have an entrepreneurial spirit by looking for potential business opportunities that can be used to increase local revenue.
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If the regions only rely on central government transfer funds, he continued, the area will find it difficult to progress.
"So, the key is to revive the private sector, both domestic and foreign private sectors, both small ultramicro, micro street vendors, or medium-sized traders," he said.
Therefore, the Minister of Home Affairs emphasized that regional heads need to provide regional policies that make it easier for the business sector to grow. An example is a policy that facilitates business licensing and policies related to the imposition of taxes.
"So, colleagues (regional heads) please build the private sector," said Tito.
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