Jakarta Vice Governor Rano Karno delivered Jakarta Governor Pramono Anung's response to the general views expressed by DPRD factions on the draft regional regulation on the 2027 City Budget (APBD) at a Jakarta DPRD plenary meeting on Monday (10/19).

In the speech, Rano addressed several issues raised by legislators regarding the 2027 budget draft.

"The preparation of the draft regional regulation on the 2027 Regional Budget follows the joint agreement between the Executive and Legislative on the General Budget Policy (KUA) and the 2027 Provisional Budget Priorities and Ceilings (PPAS)," Rano said.

In the first section, Rano outlined the Executive's responses to issues concerning integrated waste management and waste residue reduction, subsidy effectiveness, public transportation fares and services, flood control and water resource infrastructure, food security and the protection of people's purchasing power, as well as adequate housing and improvements to residential areas.

Regarding integrated waste management and waste residue reduction, Rano stressed the Executive's commitment to taking various measures.

These include optimizing waste processing capacity at the Bantargebang and Rorotan refuse-derived fuel (RDF) facilities and allocating funds for waste sorting and processing facilities and infrastructure at the source.

Other measures include encouraging greater public participation in sorting recyclable inorganic waste and taking enforcement action against illegal temporary waste disposal sites (TPS) and final disposal sites (TPA), including imposing fines.

On subsidy effectiveness, public transportation fares and services, Rano said the Executive had evaluated the effectiveness and efficiency of public transportation services and strengthened coordination among regional government agencies (OPDs) and city-owned enterprises (BUMDs) in the transportation sector.

The Executive also aims to keep public transportation fares affordable while improving service quality and sustainability through a pull strategy, balanced by a push strategy to control private vehicle use.

Rano added that the Executive continued to improve parking management and implement progressive parking rates, prepare an electronic road pricing (ERP) system, and develop low-emission zones.

It also seeks to meet Minimum Service Standards (SPM) to ensure passenger safety and comfort and plans to expand eligibility for free mass public transportation services from 15 to 21 groups, effective January 1, 2027.

Flood Control

On flood control and water resource infrastructure, Rano said the Executive continued to take various measures, including river and drainage channel normalization and the construction of reservoirs, lakes and retention basins through the Jaktirta Project.

"We are also prioritizing comprehensive and integrated flood management, with a focus on improving and optimizing existing infrastructure," Rano noted.

On food security and protecting people's purchasing power, Rano said the Executive had strengthened coordination among regional government agencies (OPDs) and BUMDs in the food sector to maintain food availability, price stability and smooth distribution.

Measures include optimizing supply planning, reserve management, warehousing, cold chains and integrated distribution in line with the respective functions of each BUMD.

The Executive is also increasing the frequency and volume of food supplies ahead of National Religious Holidays (HBKN) and making subsidized food more accessible through an online queuing system.

In addition, Rano said the Executive was monitoring food stocks and prices, strengthening early warning systems and regularly evaluating distribution to anticipate supply disruptions, minimize food losses and maintain food security for Jakarta residents.

Responding to faction views on adequate housing and improvements to residential areas, Rano explained that the Executive was carrying out multi-year construction of public housing projects, including the Padat Karya Public Housing Complex, the first phase of the Rorotan IX Public Housing Complex, and the Marunda Cluster C Public Housing Complex.

The Executive is also gradually improving infrastructure and facilities in slum areas while prioritizing community participation.

It is also seeking to address severely run-down neighborhood units (RW) through vertical land consolidation, involving the National Land Agency (BPN) and support from corporate social responsibility (CSR) programs.

Regional Revenue

In the second section, Rano outlined the Executive's responses to faction views on optimizing regional taxes and strengthening Locally Generated Revenue (PAD).

Rano said the Executive had accelerated the implementation of E-TRAP, strengthened tax intensification and extensification, digitized tax supervision, and stepped up the collection of tax arrears.

It was also reviewing and coordinating proposed tax policy adjustments, particularly regulations on the subdivision of public housing units, to optimize revenue from the Land and Building Acquisition Duty (BPHTB).

Other measures include updating motor vehicle data, improving tax payment compliance, and regularly monitoring and evaluating revenue performance for each type of tax.

Regarding transfer revenue and regional fiscal entitlements, Rano said the Executive was strengthening coordination with the Finance Ministry to monitor the allocation and disbursement of transfers to regional governments (TKD), resolve administrative issues more quickly, and address the policy on underpaid revenue-sharing funds (KBDBH).

"We hope that Jakarta will receive part of the underpaid revenue-sharing funds in the 2027 fiscal year," he added.

Rano pointed out that the Executive was also communicating and coordinating with PT Sarana Multi Infrastruktur (SMI) to explore regional loans as an alternative source of financing if regional bond issuance could not proceed in the 2027 fiscal year.

"We are also strengthening regional cash flow planning and control by taking into account projected transfer revenue, spending priorities and funding needs for public services," he said.

Rano added that the Executive was seeking to optimize the management of transfers to regional governments by meeting reporting requirements for disbursement and aligning regional government work plans with those of the central government.

Responding to views on optimizing regional assets as a source of PAD, Rano said the Executive was securing all land assets recorded, controlled and owned by the Jakarta Provincial Government to provide legal certainty of ownership and clarify land status, particularly for assets designated for use by third parties.

"We also continue to seek ways to optimize the use of idle assets through various utilization schemes to increase PAD while protecting them against misuse or unauthorized occupation," he said.

Regional Expenditure

In the third section, Rano addressed regional expenditure. He said the Executive agreed that social assistance through the Jakarta Elderly Card (KLJ), Jakarta Disability Card (KPDJ) and Jakarta Children's Card (KAJ) should be prioritized for people in the lowest welfare deciles.

"Social assistance is expected to reach more low-income residents in a targeted manner while taking regional financial capacity into account," Rano said.

To support this, the Jakarta Provincial Government also considers accurate beneficiary data, field verification and accessible public complaint mechanisms essential.

Responding to questions about free private schooling, Rano stressed the Executive's commitment to ensuring that the Education Funding Program for Private Educational Institutions complies with applicable laws and regulations, including requirements for eligible schools, funding amounts and implementation oversight.

According to Rano, the program aims to expand access to education and promote equitable service provision, guarantee every resident's right to inclusive and equitable education, and support compulsory education free of charge at privately run educational institutions.

Regarding the Jakarta Smart Card Plus (KJP Plus) and Jakarta Excellent Student Card (KJMU), Rano said the Jakarta Provincial Government was committed to ensuring that education assistance through the programs reached school students and university students from families in need.

To ensure assistance reached the intended beneficiaries, Rano said the Executive was matching and verifying data against program requirements while maintaining continued assistance for existing beneficiaries who met the criteria.

It was also preparing transition and verification mechanisms to ensure the data-matching process was fair and did not disadvantage residents.

Rano further emphasized that the migration of Jakarta's education assistance beneficiary database from the Integrated Social Welfare Data (DTKS) to the National Single Social and Economic Data (DTSEN) would ensure continued assistance for all existing KJP Plus and KJMU recipients.

"They will continue to receive their entitlements until they graduate from their current level of education," Rano noted.

Regional Financing

In the fourth section, Rano responded to faction views on regional financing. He said the Executive had taken and prepared several measures, including directing regional capital injections (PMD) to BUMDs to support strategic assignments and infrastructure development that deliver economic and social benefits and improve public services.

The Executive was also planning to issue regional bonds to maintain fiscal resilience.

Rano added that the Jakarta Provincial Government was also studying alternative financing options, including sukuk and regional loans, based on fiscal conditions and the needs of the projects to be funded.

"The Executive hopes that this draft regulation can be approved and enacted as a regional regulation according to the schedule set by the DPRD's Deliberative Body," he said.