Local Government Runs Government Ordinarily In Extraordinary Situations, Poor Budget Absorption, This Is The Solution

The health sector has received the most attention during the COVID-19 pandemic. Unfortunately, the budget absorption from the regional government is still poor. (Illustration photo Between)

JAKARTA - Secretary General (Sekjen) of the Indonesian Forum for Budget Transparency (FITRA), Misbah Hasan noted that the absorption rate of regional governments (Pemda) throughout Indonesia is very low. Thus, it has an impact on the slow development and handling of COVID-19. Then what is the solution to this classic problem?

"Low budget absorption has an impact on the slow pace of development and the poor handling of the impact of COVID-19 which is increasingly worrying," said Misbah in a statement, Saturday, July 17.

Based on data from the Ministry of Home Affairs, the provincial government's budget absorption as of July 9, 2021 is 33.78 percent. This figure is lower when compared to the same month in 2020, namely 37.90 percent.

Then for regencies and cities, the budget absorption as of 9 July 2021 was only 28.46 percent and 33.48 percent. Where, that number is also lower than in July 2020 which was at 37.50 percent.

Many sectors have been affected during the pandemic, including transportation and exports. (Illustration of the Ministry of Finance)

Based on this data, Misbah said that the local government seems to be less quick in using the budget. In fact, the current conditions require everything to be done quickly. "Less 'fast', even though this wave pandemic is more severe with daily exposure rates of more than 50 thousand people and the death rate is getting higher," he continued.

"The local government seems to be running the wheels of government 'mediocrely' in extraordinary situations because of the endless COVID-19 pandemic," continued Misbah.

Therefore, Misbah suggested that the Central and Regional Governments make new and fast breakthroughs. So, all the problems that occur during this pandemic can be resolved. "The regional government is required to reallocate 35 percent of expenditure on goods or services and capital expenditure for handling COVID-19," he said.

In addition, it is also recommended to immediately create hospital facilities that handle COVID-19, such as procuring quality PPE, ventilators, oxygen cylinders, masks, and increasing treatment rooms.

If necessary, create a non-permanent hospital because many regions, especially in Java, have hospitals that are full and unable to accommodate patients. a simplified mechanism for the procurement of goods/services during an emergency," he said.

Recommendation

To that end, Misbah also recommended several things that the central and regional governments could do. First, the Ministry of Finance and LKPP need to make policies on the mechanism for the procurement of goods/services that are simplified but still adhere to the principles of transparency and accountability. Stay through open auctions that are announced online and can be monitored by the public.

The health sector needs the most during this COVID-19 pandemic. (Illustration Between)

Second, the Ministry of Home Affairs needs to regulate the minimum budget absorption limit for Regional Governments per semester as well as punishment for those who do not comply. And Third, local governments, both provincial and district/city, need to make a breakthrough in budget management so that the budget can be absorbed properly and on target.

Next the fourth; public involvement is needed to accelerate the absorption of regional budgets, either through Type III and Type IV Swakelola schemes that provide space for Civil Society Organizations and Community Groups. And fifth; The government and local governments need to take the Lockdown option for red zone areas or even nationally and take advantage of the unabsorbed budget for 'padding' social assistance.

This input can be an alternative solution in the midst of extraordinary circumstances where COVID-19 is still high at this time. The absorption of bad assumptions can be even better, as FITRA hopes and also the public in general so that they can feel the government's helping hand at this difficult time.