In some regions, budget allocations for aid to particular sectors are deliberately kept under the Rp 200 million (US$12,257) threshold to allow for direct procurement instead of competitive tenders.
As we approach the regional head elections, the streets are increasingly dominated by billboards featuring individuals introducing themselves rather than the usual commercial advertising products. These billboards prominently display the candidates' names, faces and campaign slogans, with some even making promises to develop their regions.
This visual shift in public spaces signifies the onset of the regional election season, a period marked by heightened political activity and public concern.
In the wake of the recent presidential and legislative elections, a significant public concern is the potential misuse of state funds for electoral gains. This issue is likely to resurface in the upcoming election, especially since many candidates are current officeholders or acting officials.
The critical question is how the public can ensure that regional government finances are not misused for these campaigns? To address this concern, there are several steps that the public can take to monitor and safeguard the use of regional funds during the election period.
First, understanding the fundamental regulations governing regional financial management is crucial. According to Article 309 of Law No. 23/2014 on regional government, the foundation of regional financial management within a fiscal year is the regional budget (APBD), which is enacted through regional regulations (Perda).
These figures are further detailed in the Regional Head Regulation (Perkada) on APBD elaboration, and each work unit will prepare a budget implementation document (DPA) based on this regulation. All APBD expenditures must be based on the DPA, and funds can only be used if the budget for the activity is available and sufficient in the APBD. Additionally, the use of APBD for purposes other than those stipulated is prohibited.
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