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Tito lambasts ‘wrong mindset’ in regions’ budget policies
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Home Minister Tito Karnavian speaks during an investment meeting in Jakarta on Nov. 30, 2022. (Home Ministry/-)
H
ome Minister Tito Karnavian has criticized regional decision-makers for not doing enough to spend funds they have received to speed up investment and economic development.
In a meeting on nationwide investment organized by the Investment Ministry, the home minister complained that several regional leaders had the “wrong mindset” on the economics of budget spending and income.
According to government data, local administrations across the country had only spent 62 percent of their annual regional budgets (APBD) as of Nov. 25, leaving Rp 278 trillion (US$18 billion) unused.
“I went to the field and met with 548 regional heads. I am worried about how regional heads think and believe […] Most regional heads' mindset on budget income and spending is not what we expect to support investment,” Tito said on Wednesday, adding that spending this year was even further behind schedule than last year.
Factors hindering budget realization included contracts with year-end payments, project tender delays, a lack of inter-institutional coordination, political disputes between regional administrations and regional councils and even simply “not caring about regional spending figures,” according to the home minister.
Spending needed to be accelerated, he said, as local budgets were imperative for strengthening people’s purchasing power and stimulating private sector activity.
Data from the Home Ministry as of Nov. 25 show that Jakarta, North Sumatra and South Sulawesi were among 19 provinces where budget realization was below the national average.
