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    West Java Financing Innovation: Knocking on Other Budget Doors so that Development Is Not Only Sourced from the Regional Budget


    PANGANDARAN REGENCY- Regional Development Financing is one of the materials presented in the Coordination of Regional Government Implementation (KOPDAR) in the Third Quarter of 2019 at the Pantai Indah Timur Hotel Pangandaran Regency, Thursday (9/26/19).

    In the agenda led by the Governor of West Java (West Java) Ridwan Kamil and followed by Regents / Mayors throughout West Java, the speakers present to discuss regional development financing include the Head of the Advisory Group & Economic Development Bank of West Java Province Representative Office Private Santoso, Director of Fund Facilities Regional Balance and Loans Ministry of Home Affairs M. Ardian Novianto, and Director of Bank bjb Yuddy Renaldi.

    According to Emil - as Ridwan Kamil was called, the Provincial Government (Pemdaprov) had a vision: West Java Champion Born Inner with Innovation and Collaboration. The vision is supported by nine development priorities, including Innovation-based Economic Growth, Village Development Movements, and Public Service Innovation and Regional Arrangement.

    To accelerate the development, Emil emphasized that the Regional Government could not rely on the Regional Budget (APBD) because it was only 10 percent of what was needed.

    Therefore, Emil said that the Head of the Second Level Region or Regent / Mayor must be able to use or access the Provincial APBD and the State Budget (APBN) to be the foundation in realizing development targets.

    Regarding the State Budget, Emil said that the Second Level Local Government in West Java was not optimal in proposing funding to the central government despite the fact that the potential of funds disbursed was quite large.

    Provincial APBD, meanwhile, according to Emil, is always open to 27 districts / cities by accessing it through the West Java Regional Development Planning Agency (Bappeda), direct assistance from the Governor of West Java, or through the House of Representatives in accordance with electoral districts (electoral districts).

    "After I observed, it is rarely the regional head who talks with the council in his electoral district, even though the budget is quite large. Now, I entrust this door to be knocked (accessed)," Emil ordered.

    To the Regents / Mayors, Emil also advised them to take advantage of the West Java Provincial Liaison Agency Office located in DKI Jakarta to stop when they have activities in the capital city or to exchange information.

    Because the Liaison Agency has a strategic role in lobbying ministries / institutions (KL) in the central government to look for opportunities that can support the development of West Java.

    "I assign (the Liaison Agency) to the ministries / institutions, join meetings, they will be the ears of West Java in Jakarta," Emil said.

    In addition to the Provincial and Regency / City APBDs and the State Budget, Emil added that other budget doors to accelerate development could be sourced from regional bank loans and regional bonds.

    In this case, the West Java Provincial Government seeks to maximize the function of the BJB as a regional development bank. Even under the leadership of President Director Yuddy Renaldi, the bjb presented Regional Infrastructure Credit (Kredit Indah) which is ready to finance regional infrastructure development in West Java.

    "Today's souvenir (KOPDAR Quarter III), let's be enthusiastic that developing regions no longer have to be from the APBD's door," Emil stressed.

    "Innovation in autonomy, we change the mindset. Leaders who innovate with (funding sources) other than the regional budget," he added.

    Three other budget sources that complement the concept of the Eight Doors Budget are the ummah's fund, Corporate Social Responsibility (CSR), and Public Private Partnership aka the Public Private Partnership (PPP).

    Meanwhile, the Director of the Ministry of Internal Affairs (Kemendagri) Regional Balance and Loan Fund Facility Facility Muhammad Ardian Novianto said that regional loans as a source of funding are substantially regulated in PP 56 of 2018.

    According to Ardian, regional loans usually arise because there is a gap between regional income and expenditure. "When income is smaller than spending, that's where the concept of local loans emerged," Ardian said.

    Even so, Ardian reminded the local government to first ensure signs before applying for a loan, including checking (Remaining Over Budget Calculation) and reserve funds in the APBD.

    "Before borrowing, first check what kind of Silpa, so first use Silpa. Secondly, check in the APBD whether there is a reserve fund or not, if there is one, it will be cashed," Ardian said.

    Director of Bank BJB Yuddy Renaldi said that his party was ready to participate in financing development in West Java. Yuddy said, bjb through Indah Credit in 2018 had disbursed Rp7.5 trillion in infrastructure loans, with details of an allocation of Rp4.4 trillion for the Province of West Java.

    "We are ready to participate in financing pebuilding in the area of the father / mother (regent / mayor), both as a lead and arranger, as well as direct financing of regional infrastructure in their respective areas, "said Yuddy.

    "For the commercial segment until mid-Semester I of 2019, there are a number of infrastructure projects that have been financed, for example the Majalaya ring road project, the Tegal Gede overpass project, the rearrangement of Cirebon City Square, and others," he added.

    Aside from delivering material for regional development financing, a joint agreement on regional development in West Java Province was also signed in this year's Third Quarter KOPDAR.

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