President Joko '€œJokowi'€ Widodo speaks at a recent event on Tuesday, Dec. 8. (thejakartapost.com/Wienda Parwitasari)

President Joko '€œJokowi'€ Widodo will soon be presenting the 2016 budget implementation entry lists (DIPA) and give awards to the local governments that have managed to disburse their budgets on target.

The President had pledged to give the awards, including regional incentive funds, last year as part of an effort to speed up government spending nationally.

Jokowi is to present the 2016 DIPA to all ministers, heads of state institutions and governors in Indonesia, as well as to the finance minister.

'€œIn a move to improve the state budget implementation, we need an acceleration in the budget disbursement, especially in infrastructure spending and large-scale goods and services procurement," said Finance Minister Bambang Brodjonegoro as quoted by Antara news agency on Monday.

The ceremony was the initial step for implementing the 2016 budget bill, which was approved in a plenary meeting with the House of Representatives in October.

The total amount of the 2016 budget is Rp 2,095.7 trillion (US$150.1 billion), which is an increase of 5.6 percent compared to the 2015 revised budget. Of that amount, 37.4 percent was allocated to local governments and 36.7 percent was transferred to all villages in Indonesia as '€œvillage funds'€.

From year to year, the central government expects the local governments and the ministries to spend their budgets faster, but unfortunately the same problems always occur and they normally disburse only between 20 and 30 percent of their budgets in the first half of the year.

For 2016, the government is eyeing a 5.3 percent growth in the economy with a more stable inflation rate and currency. (ags)(+)

Popular

Java airports grounded by low demand, poor planning

Rethinking ocean finance

Trump says Indonesia to face 19 percent tariff under trade deal