Deputy Home Minister: Budget Efficiency, Synergy Key to Boosting Regional Economy

As reported by CNN Indonesia, Deputy Home Minister Bima Arya Sugiarto highlighted the critical role of budget efficiency and central-regional government synergy in boosting regional economies. Speaking at the Central Java Provincial Development Deliberation, Sugiarto urged regional leaders to focus on smart spending, innovative local revenue generation, and the effective management of National Strategic Projects.

Sugiarto specifically praised Central Java's fiscal strength, noting that its own-source revenue (PAD) accounts for a significant 66.07% of its total income, far exceeding the 33.83% transferred from the central government. This robust fiscal health is a testament to the region's effective financial management and its ability to drive its own economic development.

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So, we often encourage regional heads with points on efficiency, PAD innovation, and then National Strategic Projects, which some regional heads find difficult, but if we oversee them together, they can actually boost the regional economy.

The Deputy Minister's remarks underscore a national push towards greater fiscal autonomy and efficiency at the regional level. The emphasis on PAD and strategic projects signals a move away from over-reliance on central government transfers, empowering regions like Central Java to take greater ownership of their economic destinies. This approach, if widely adopted, could lead to more dynamic and resilient regional economies across Indonesia.

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If we look, ladies and gentlemen, the fiscal capacity in Central Java is solid.