New Regional Government Budget Realization 64 Percent

DIPA and transfer allocations to regions for 2024 submitted. However, the actual absorption of the 2023 budget is only between 64 percent and 74 percent.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Realisasi Anggaran Pemda Baru 64 Persen

NINA SUSILO

Ministers and agency heads checked the allocation of their respective ministry's budget through their devices. This year, the State Budget Implementation List (DIPA) has been digitized and is being carried out through the Sakti application. Therefore, the symbolic handing over of the DIPA for ministries/agencies and the list of allocation transfers to regions for the fiscal year 2024 was conducted at the State Palace in Jakarta on Wednesday (29/11/2023).

JAKARTA, KOMPAS — President Joko Widodo has once again reminded that the state budget must be used promptly. Thus far, the absorption of local or central government budget is still low. The realization of local expenditures until the end of November is only 64 percent. As for the central government's spending realization, it is only slightly better at 74 percent.

President Jokowi mentioned these two figures in the submission of the budget implementation checklist (DIPA) and fund allocations transfers to regions for the 2024 fiscal year at the Palace State, Jakarta, Wednesday (29/11/2023). Attending the event offline were United Indonesia Cabinet ministers, heads of institutions and several governors. Apart from that, regional heads were also present online.

With a low absorption of the budget towards the end of the fiscal year, massive spending will be carried out at the end of the year. "This means that in the next three weeks, trillions of rupiahs will be spent and we repeat this every year," said the President.

Also read: Absorption Problem Recurs, IDR 278 Trillion Settles in Banks

NINA SUSILO

President Joko Widodo greeted the ministers, institution heads, and governors who attended the submission of the Ministry/Institution Budget Year Allocation and Transfer Allocation List to the regions for the 2024 fiscal year at the State Palace in Jakarta on Wednesday (29/11/2023).

In the digital DIPA submission and allocation of transfers to regions, the President requested that the budget be executed as soon as possible. "January will soon start the budget, realization. Realize it as soon as possible," he said.

The President had previously expressed his frustration regarding the slow implementation of the government's budget. However, this issue still persists.

Furthermore, it was ordered that the budget be used with discipline, meticulousness, precision, prioritizing transparency and accountability.

Apart from that, all agencies, both central and regional governments, must be ready to anticipate uncertainty through automatic adjustment. “Adjustments must be agile. "As soon as there is immediate change, we are agile in changing because uncertainty is really stalking us every Sunday and every month," he added.

The use of public funds in the form of national and regional budgets (APBN and APBD) should also be results-oriented. Although President Jokowi has mentioned that the procedures must be adhered to, the most important thing is to focus on achieving results so that the budget can be maximally beneficial for the people.

NINA SUSILO

President Joko Widodo at the State Palace, Jakarta, Wednesday (29/11/2023).

Local governments are also expected to collaborate with the central government and align their budgets with central policies. "We don't want to see the central government building dams, with the irrigation being the responsibility of the local government, and then nothing is done. Why build a big port when the roads linking to the provincial and district cities are not connected? Why build a tolled road when the regional government should connect it to industrial, tourism, and agricultural areas," said the President.

On the other hand, it is hoped that regional transfer funds can be utilized by local governments to improve public services, including education, health, infrastructure development, developing alternative financing innovations, as well as maintaining investments. This is because investment is considered as the key to economic growth.

Regarding the low budget absorption at the end of the year, Sri Mulyani said, monitoring was still carried out by the Ministry of Finance together with the Ministry of Home Affairs. "The Minister of Home Affairs also reported that this week he will intensively monitor the bottleneck areas," he said.

On the other hand, usually ministries/agencies and regional governments will ask for special treatment so that they can use the budget when project work is completed at the beginning of the following fiscal year or use an escrow account as collateral.

Also read: Put your brain on budget management

NINA SUSILO

Minister of Finance Sri Mulyani Indrawati provided a statement to reporters after the delivery of the budget implementation plan for ministries/agencies and the list of allocation transfers to regions for the fiscal year 2024, on Wednesday (29/11/2023).

"On the other hand, we still support the project to be completed as well. In December, we are truly observing and dealing with such a situation," said Sri Mulyani."

In the last year of his presidency, President Jokowi also conveyed his message that the budget could be optimized, development agendas completed and could become a foundation for the next government. He also hoped that next year's election will be peaceful and that the society will continue to strengthen harmony and unity.

"I wish that next year's simultaneous elections, we can maintain its calmness, strengthen harmony and unity so that the democratic celebration can be held peacefully and with quality," he added.

In 2024, the state revenue target is set at Rp 2802.3 trillion. According to Sri Mulyani, this will be achieved through optimization and maintaining investment climate amid global uncertainty. In addition, the taxation sector will continue to be pushed, as well as the optimization of Non-Tax State Revenue (PNBP).

NINA SUSILO

President Joko Widodo during the presentation of DIPA (budget realization report) to ministries/agencies and the allocation list for regional transfers in the 2024 fiscal year in digital form at the Presidential Palace, Jakarta on Wednesday (29/11/2023).

In terms of spending, the government and the DPR have agreed that spending in APBN 2024 will reach IDR 3325.1 trillion. This spending consists of central government spending of IDR 2467.5 trillion and transfers to regions of IDR 857.6 trillion.

Government spending will be directed towards improving the quality of human resources, completing priority infrastructure development, accelerating the transformation of green economy, as well as supporting bureaucracy reform and state apparatus.

In a statement to reporters after the handover of the DIPA, Sri Mulyani mentioned several priority expenditures. Education spending at Rp 665 trillion and social protection, including the distribution of BLT, PKH, and other social assistance, at Rp 496.8 trillion.

This social protection spending will still consist of basic food cards for 18.8 million recipients and the Family Hope Program (PKH) for 10 million recipients. The distribution of basic necessities, according to Sri Mulyani, is carried out according to need. At the end of 2023, from September to December, rice distribution will be carried out to overcome El Nino which causes drought and increases in food prices. "We adjust the timing and targets according to the situation at hand," said Sri Mulyani.

Translation: The social protection spending also includes the proposal from the Coordinating Minister for Human Development and Culture to provide health assistance for early childhood education (PAUD) children, vulnerable and poor families, as well as the elderly.

KOMPAS/PRIYOMBODO

The activity of workers in the Nusantara Capital Region development project in North Penajam Paser Regency, East Kalimantan, on Thursday (2/11/2023).

Infrastructure spending has reached Rp 423.4 trillion, mainly for national priority infrastructure such as ICT, energy, food, and connectivity, as well as infrastructure development in the IKN.

Next year's health spending will be IDR 107.5 trillion, including to accelerate the reduction of stunting and improve national health insurance. Other allocations are for food security which reaches IDR 114.3 trillion and for law and security defense IDR 331.9 trillion.

The allocation for the development of the new capital city of Indonesia (IKN) in 2024 is IDR 40.6 trillion. This will be used for the development of the main areas, particularly the ministry offices, the development of apartments for government officials, and the electricity infrastructure.

The implementation of the 2024 elections also prepares an allocation of Rp 38 trillion. Sri Mulyani also stated that the government remains anticipating the occurrence of a second round.

Also read: Ministry of Defense Receives Additional Foreign Loans of IDR 61.7 Trillion for Shopping for Defense Equipment

ANTARA FOTO/KAHFIE KAMARU

Residents show their ballot papers after simulating voting at polling station 10 in Pondok Cina, Depok, West Java, on Saturday (23/3/2019).

The transfer of funds to regions in 2024 will reach Rp 857.6 trillion, an increase of 5.3 percent from 2023. According to Sri Mulyani, this increase is to support the payment of government employees with regional employment contracts (P3K), particularly for teachers and healthcare workers.

In the final year of work of the Advanced Indonesia Cabinet, the APBN was designed with a deficit of 2.29% of GDP, namely Rl 522.8 trillion. "Deficit financing will continue to be maintained in a higher for longer atmosphere and we will also use a cash buffer to minimize financing risks and maintain the debt ratio at a safe level," said Sri Mulyani.

Digital

In 2024, the DIPA (Detailed Budget Plan) will also be in digital form. Symbolic handover will only require the press of a button. President Jokowi also asked ministers, heads of institutions, and governors if they had checked their respective budgets in their work.

NINA SUSILO

The ministers discussed prior to the presentation of the budget implementation plan (DIPA) for the ministries/agencies and the allocation list for transfers to regions for the fiscal year 2024 at the State Palace in Jakarta on Wednesday (29/11/2023).

This digitalization, according to Sri Mulyani, has been implemented since the budget planning stage up until the signing of the DIPA. This also reduces the 12 complex process stages to only four stages with the use of the Sakti application.