Breakthrough Needed to Meet People’s Needs

KOMPAS/AGUS SUSANTO

A scavenger carries a cart across Jalan Mas Mansyur, Central Jakarta, Thursday (22/7/2021). The distribution of aid for workers affected by the imposition of restrictions on emergency community activities and other social assistance, which is more targeted, is expected to be realized.

JAKARTA, KOMPAS – Regional administrations have been urged to sensitively address the difficulties people are facing in light of the COVID-19 pandemic and its adverse effects. Breakthroughs are needed, especially to accelerate the disbursement of regional budgets to fulfill the people’s needs.

To ensure this, the central government’s supervision and guidance must be optimized. Apart from the fact that there are still regional heads not seriously addressing the crisis, there are also many bureaucrats lacking in competency to handle the situation.

The recent call for local administrations to accelerate the disbursement of regional budgets, especially for COVID-19 relief, came from Regional Legislative Councils (DPRDs). The Indonesian Association of Regency DPRDs (Adkasi), for example, expressed regret over the slow budget absorption in many regions.

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“The DPRDs already ratified the APBD [regional budget] at the end of last year, while its use for COVID-19 handling does not require DPRD approval. Thus, regional heads should not see any hindrance to spending their budgets,” Adkasi chairman Lukman Said, who also chairs the Pasangkayu DPRD in West Sulawesi, said when contacted on Thursday (22/7/2021).

According to data from the Home Ministry, as of 15 July, only 33.08 percent of provincial and district/municipal regional budget expenditure has been realized. Meanwhile, reallocated funds from 8 percent of the revenue-sharing funds in regional budgets had realized only 17.61 percent as of 17 July.

KOMPAS/ABDULLAH FIKRI ASHRI

A kiosk in a shopping center that was closed in Cirebon City, West Java, due to restrictions on emergency community activities, Wednesday (14/7/2021).

Separately, the Finance Ministry’s Fiscal Balance Director General Astera Primanto Bhakti revealed that regional administrations’ balances had again increased in June. The figure reached Rp 190 trillion by June 2021, higher than Rp 172 trillion the previous month.

Lukman added that regional heads needed to empathize with the people who have been severely affected by the pandemic. “The allocated budget needs to be spent immediately, not saved,” he said.

Indonesia Budget Center (IBC) executive director Roy Salam also observed that there were still many regional heads who did not deem the COVID-19 pandemic to be an alarming issue. As a result, the pattern of budget absorption did not even reflect that there is a pandemic, with the pattern showing fast budget disbursement only towards the end of the year. Ideally, the minimum budget absorption should be 40 percent by the middle of the year.

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“The central government’s supervision over regional budgets is very important. The Home Ministry, for example, must guide regional heads,” he said.

Guidance and supervision from the central government was needed because a significant number of regional leaders were not competent enough to manage their budgets. As a result, these individuals had difficulty looking for ways to speed up budget disbursement. Thus, spending was hampered primarily due to administrative issues.

Administrative issues

BIRO ADPIM PEMPROV JABAR)

West Java Governor Ridwan Kamil (right) distributes basic food and cash assistance to residents affected by the imposition of restrictions on emergency community activities in Bandung Regency, Wednesday (21/7/2021).

In response to the low absorption of their budgets, regional administrations have promised to accelerate disbursement. This, among other matters, was stated by West Java Governor Ridwan Kamil, who is also Regional Coordinator of Java, Bali and West Nusa Tenggara in the All-Indonesia Provincial Government Association. On a separate occasion, Ahmed Zaki Iskandar, the Tangerang Regent and deputy chairman of the All-Indonesia Regency Government Association, echoed Kamil’s sentiment.

According to Kamil, the low budget absorption was due to the tardiness of several hospitals in submitting their proposal to the provincial administration. “We have already reprimanded and reminded [the hospitals] that the budget is ready. All that is left is to pay the bill that the hospital provides,” he said.

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Meanwhile, Ahmed Zaki said that the low budget absorption was due to issues with the regional development information system (SIPD) at the Home Ministry, as well as employees having to work from home and the refocusing and reallocation of regional budgets.

On the other hand, the Finance Ministry is considering taking over the distribution of the village direct cash assistance (BLT), the disbursement of which is currently stagnating at the level of local administrations. Until the third week of June 2021, the total absorption of the village BLT reached only 21.2 percent of the ceiling. According to Finance Minister Sri Mulyani Indrawati, the administrative takeover will serve as a sanction if budget absorption remained low. ( SYA / PDS / NIA / DIM)

This article was translated by Kesya Adhalia