Surabaya (malangkota.go.id) – The Indonesian Minister of Home Affairs (Mendagri) Tito Karnavian reminded regional heads throughout East Java in particular and representatives of regional heads for Regional I which includes 18 provinces in Kalimantan, Sulawesi, Nusa Tenggara, Maluku, Papua and East Java who were present at the Regional Development Technical Coordination Meeting I Synchronization of the Center and Regions held at the Shangri La Hotel Ballroom, Surabaya, Wednesday (4/3/2020).
"I need to remind you and it should be a concern. On average, the capacity of PAD (local revenue) in each region in Indonesia is still 20 percent. This means that 80 percent of the APBD still depends on transfer funds from the Center," he said.
Minister Tito informed that the APBN burden is getting heavier, especially now facing a global situation, namely the US-China trade war, US Domestic Politics (presidential election process) and most recently the Corona virus. "All of that has an impact and shock to our country's economy. So I emphasize and encourage regional (budget) independence, because it is possible (scenario) that the (Central) Government will cut transfer funds to the regions. So I ask the regions to be more innovative, creative and also have an entrepreneurial spirit (investment orientation)," explained Minister Tito.
In this regard, the Ministry of Home Affairs will immediately launch Electronic Financial System, which it will also be used for monitoring and controlling financial management in the regions.
Meanwhile, Deputy Mayor of Malang Ir. H. Sofyan Edi Jarwoko on the sidelines of his presence at the event held from March 2-6 emphasized the appeal of Minister of Home Affairs Tito as an inevitability.
"The burden of the APBN is indeed one of our concerns in the region. In fact, Mr. Sutiaji (Mayor of Malang_ed) has repeatedly pushed andpush PAD target to the maximum. And that is indeed our focus, including stimulating the movement of the regional economy through the creative economy, the arrangement of traditional markets and MSMEs along with the arrangement of regional infrastructure. That is none other than directed so that the economic cycle in Malang City grows rapidly," said Bung Edi, as the Deputy Mayor of Malang is familiarly called.
Director General of Regional Development Development of the Ministry of Home Affairs of the Republic of Indonesia Muh. Hudori as the head of the committee of the activity informed that this Rakortekbang was held in order to synchronize programs between the Central and Regional Governments. And it was held for five days and attended by 1000 participants including mayors/regents throughout East Java, Regional Secretaries throughout Regional I, Heads of Bappeda throughout Regional I and representatives of Technical Regional Apparatus. The speakers were from the Ministry of Home Affairs and Bappenas and the main speakers were Minister of Home Affairs Tito and Chairman of the Corruption Eradication Committee of the Republic of Indonesia Firly Bauhuri.
Meanwhile, East Java Governor Khofifah Indar Parawansa said that as a form of commitment to accelerate development movement in the region, for the East Java region, Village Funds have been distributed worth three trillion rupiah. "This is a picture in East Java that has moved and there is no slowdown," he explained.
Another strategic issue that the regions are also asked to pay attention to is related to the demographic bonus. "The demographic bonus is definitely related to employment issues, and can no longer be relied on bureaucratic personnel. Therefore, investment needs to be encouraged because it will open up job opportunities and absorb labor. The problem is that investors are not interested in us (Indonesia), tired of the administrative process with its pile of regulations. We are experiencing regulatory obesity and that is an obstacle to investment, so we are developing omnibus law, which also includes the job creation omnibus," he explained again.
He added that Minister Tito Karnavian also conveyed the impact of Corona, because it threatens the tourism sector, disrupts the manufacturing and trade sectors and reduces the flow of capital. foreign direct investment. "We remain vigilant and careful, but excessive comments about corona will actually shake the foundations of the economy," he concluded. (hms/yon)
