JAKARTA - Through the VI National Conference (National Conference) of the Association of Indonesian Provincial Governments (APPSI) in Jakarta, the Minister of Home Affairs (Mendagri) of the Republic of Indonesia (RI) Tito Karnavian encouraged the governor to improvise in increasing Local Revenue (PAD).
Tito said that currently some local governments (pemda) are still not financially independent because they depend on transfer funds from the central government.
From the data held by the Ministry of Home Affairs, said Tito, the Regional Original Revenue (PAD) of the provincial government contributed 46 percent to the APBD. While the PAD of the regency / city government only 15 percent supports the APBD.
"That is, 85 percent (district / city APBD) depends on central transfer funds," said Tito at Borobudur Hotel, Jakarta, Tuesday (11/26/19).
To that end, Tito praised regional heads who had improvised in increasing the regional budget according to the legal corridor, one of them was the Governor of West Java (West Java) Ridwan Kamil.
"As the Governor of West Java (Ridwan Kamil) has good entrepreneurial skills so that many investors enter and his PAD increases," said Tito.
Ridwan Kamil himself is keen to offer various strategic projects in the province with the largest population in the country through investment forums, including the West Java Investment Summit (WJIS) 2019 and the US-Indonesia Investment Summit.
The governor, who is familiarly called Emil, also has the concept of an eight-door budget in developing West Java. In addition to the APBD, the development of the province with the largest population in the country originates from the people's fund to Corporate Social Responsibility (CSR).
Even in the VI National Conference of APPSI this time, Tito advised the governors to utilize Regionally Owned Enterprises (BUMD) to boost PAD.
"This BUMD effort can seize opportunities and become a contributor to PAD, don't become a burden on the local government but be a contributor," he said.
In addition, Tito also appealed to the governors to utilize information technology (IT) for openness and ease of planning, supervision and use of APBD through e-budgeting, e-catalog and e-controlling.
If you use the old-fashioned way, Tito assesses the gap of corruption or misuse of the budget because it is not transparent will be wide open. "So the local government must build a system utilizing IT in order to oversee, plan, and execute the use of APBD," he said.
Tito also stressed that his party had issued a circular about cashless transactions with the banking system to all regional heads to facilitate monitoring of cash flow.
The APPSI VI National Conference, which was attended by 34 governors throughout Indonesia, lasted for two days and was officially opened by Indonesian Vice-President Ma'ruf Amin on Monday (11/25). On the second day (26/11), there was a main agenda to elect the General Chairperson of APPSI in 2019-2023.