Much of APBD not absorbed, finance ministry to impose sanctions on regional governments

TEMPO.CO, Jakarta -The Ministry of Finance or the Ministry of Finance will impose criminal sanctions on regions that are not optimal for absorbing funds from the regional expenditure budget (APDB). The finance minister’s special staff for strategic communication, Yustinus Prastowo, said his ministry would also improve planning.

Prastowo said the government is currently in a period of transition to the Financial Relations between Central Government and Regional Governments Act (UU) or the HKPD Act. Because Law Number 1 of 2022 has not been fully implemented.

“Now next year with PP and others we canarrange Good. So there are performance indicators, what are the achievement criteria, what is not absorbed is reassignment,” Prastowo said when meeting with Tempo at Bintang Baru Hotel Jakarta on Saturday, December 17. 2022.

“Later, the regions will compete to do good planning so that they are not penalized,” he said.

Previously on Friday, December 16, 2022, Ministry of Finance revealed that by the end of 2022, only 75.22% or IDR 903.3 trillion had been realized out of the IDR 1,200.87 trillion cap. Prastowo also hopes that in the remaining time the APBD will absorb more.

“We will continue to encourage the absorption of the APBD so that good public services can be put in place. The aim is also to boost the regional economy,” said Prastowo.

Regarding the absorption of the APBD, the Director General of Budget Balance of the Ministry of Finance, Luky Alfirman, said that regional governments should or local government can build on the existing budget. Above all for development, thus creating a multiplier effect for society, notably in the form of equitably distributed well-being.

“The task of the regions is to know how to spend on development so that the multiplier effect can benefit the local community, namely well-being,” Luky said during a press conference on Friday, December 16, 2022, quoted by Antara.

In line with Prastowo, Luky said APBD spending should be optimized for development programs in areas that can be appreciated by the community. Moreover, he mentioned that the central government has also distributed transfers to regions and village funds (TKDD) reaching 93.54% or IDR 752.81 trillion against this year’s target of 804, IDR 78 trillion.

Read also : Absorption of 75% of the new APBD, Ministry of Finance: task of the spending regions for development

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Zera Carpenter

"Typical thinker. Unapologetic alcoholaholic. Internet fanatic. Pop culture advocate. Tv junkie."

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