Jakarta Governor, Anies Baswedan conveyed Regional Regulation Draft (Raperda) on Amendments to City Budget for 2020 Fiscal Year (Raperda APBD-P 2020) in plenary meeting with Jakarta Council (DPRD), this Tuesday (11/3).
" Economy realization in Jakarta on the second quarter contracted by -8.22 percent"
He explained, this Raperda was proposed as a priority for the use of City Budget (APBD) 2020 to overcome COVID-19 pandemic, especially in health, economy, and social safety net. In this chance, he also reported that up to fifth refocusing, the Unexpected Expenditure disbursed by Jakarta Government to overcome COVID-19 amounted to Rp 5.19 trillion.
"Economy realization in Jakarta on the second quarter contracted by -8.22 percent. The slowdown in economic growth on second quarter caused by a decrease in household consumption and investment. Weak global demand also contributed to economic slowdown through exports that grew negatively. Large-Scale Social Restrictions (PSBB) and distance learning caused decreasing income and ability to pay wages that continues on termination of employment. It will cause a decrease in people's purchasing power," he said when presenting evaluation results of macroeconomic conditions and City Budget implementation as quoted from PPID Press Release, Tuesday (11/3).
He also mentioned that realization of City Revenue by the end of June 2020 reached Rp 23.88 trillion or 29.04% from the original plan of Rp 82.19 trillion.
Here are the detailed data regarding City Revenue realization:
- Local Own-source Revenue (PAD) has been realized Rp 14.8 trillion or 26.64% of the initial target of Rp 57.56 trillion consisting of Regional Tax (22.95%), Regional Retribution/Levy (37.74%), Results of the Segregated Regional Assets Management (45.48%), and Legal Miscellaneous PAD (34.72%);
- Fiscal Balance has been realized Rp 9.66 trillion or 44.51% from target Rp 21.61 trillion consisting of Tax Revenue Sharing Fund and Non-Tax Sharing Fund (42.65%) and Special Allocation Fund (54.84%);
- Other Lawful Local Revenue has been realized Rp 37.25 billion (1.24%) of target Rp 3.01 trillion consisting of Grants (0.11%) and Adjustment Funds and Special Autonomy Funds (54.42%).
"Until the end of June 2020, Regional Expenditure has been realized Rp 19.86 trillion or 24.95% of total Regional Expenditure Budget of Rp 79.61 trillion from Indirect Expenditure (32.46%) and Direct Expenditure (19.15%). As for Regional Financing realization, according to the results of BPK audit of Report on Local Government Finances (LKPD), Unspent funds at the end of fiscal year (SiLPA) 2019 was Rp 1.2 trillion. This figure is lower than the prediction in budgeting APBD 2020 with total Rp 5.5 trillion. While the Financing Expenditure has been realized Rp 65.92 billion or 0.79% of target Rp 8.34 trillion," he stated.
Moreover, he conveyed the amendment plans of APBD 2020 based on the realization of Jakarta's macroeconomic conditions and APBD implementation until the end of June 2020.
In general, additional budget is made for Unexpected Expenditure from Indirect Expenditure which from Rp 188 billion into Rp 5.19 trillion or increase more than 27 times in order to accelerate COVID-19 handling.
There was also Direct Expenditure group for National Economic Recovery (PEN) which allocated for:
- Improving Flood Control Infrastructure;
- Improving Infrastructure for Drinking Water Service Improvement
- Improving Waste Management Infrastructure,
- Improving Transportation Infrastructure;
- Improving Tourism and Culture Infrastructure (Revitalizing TIM)
- Improving Sports Infrastructure (JIS construction)
On the other hand, budget reduction in APBD-P 2020 is carried out to increase budget effectiveness in rationalizing Personnel Expenditures by:
1. Rationalizing spending on goods/services by at least 50% by reducing expenditure budget, especially for:
- Business trip;
- General office supplies;
- Print and duplication;
- Official clothing and attributes as well as special clothes for certain days;
- Maintenance, maintenance of motor vehicles;
- Rent a house / building / warehouse / parking;
- Rent a means of mobility;
- Heavy equipment rental;
- Office services;
- Consulting services;
- Experts / instructors / resource persons;
- Money transferred to a third party / community;
- Food and beverages as well as meeting packages in the office and outside the office; and
- Socialization, workshops, technical guidance, training, FGDs, and other meetings that invite large number of people.
2. Rationalizing capital expenditures by at least 50% by reducing:
- Procurement of official / operational vehicles;
- Procurement of machines and heavy equipment;
- Land acquisition;
- Room / building renovation;
- Furniture and office equipment;
- Construction of new buildings; and
- Development for other infrastructure which allows it to be postponed to the following year.
In particular, he also mentioned about adjustment of Macroeconomic Assumptions, plans for changes in regional income, plans for changes in regional expenditures and regional financing.
1. Macroeconomic Assumptions
- Economic growth which previously projected at 6.3% became in the range of 0.7-1.1 percent. This figure is higher than the national economic growth target in the range of 0.2-1.1 percent.
- Inflation which previously projected at 3.2 ± 1 percent turned into 1.5-1.9 percent. This figure is below the national inflation projection of 2-4 percent.
- Rupiah exchange rate against US dollar which originally projected to be in the range of Rp 14,000-15,000 per US dollar was finally corrected by following the National assumption in RAPBN 2021 Financial Note of Rp 14,400-14,800 per US dollar.
2. Local Revenue
- Previously it was planned to be Rp 82.19 trillion and then corrected to Rp 57.06 trillion, which decreased by Rp 25.12 trillion.
- Correction of Local Revenue caused by a significant reduction in Regional Tax of Rp 17.69 trillion.
3. Regional Expenditure
- Indirect and Direct Expenditures decreased by Rp 20.82 trillion or 26.16 percent, from Rp 79.61 trillion to Rp 58.78 trillion.
- Indirect expenditure, which was initially allocated at Rp 34.67 trillion, has decreased by Rp 1.03 trillion (3%) to Rp 33.63 trillion.
- Meanwhile, Direct Expenditure which was originally allocated for Rp 44.93 trillion was decreased by Rp 19.78 trillion (44.04%) to Rp 25.14 trillion.
4. Regional Financing
- Previously, regional financing was allocated as much as Rp 5.76 trillion from SiLPA 2019 prediction and Proceeds of Regional Loan. In Raperda APBD-P 2020, financing receipts have increased by 7.05% or Rp 406.33 billion to Rp 6.16 trillion, consisting of: increase in Regional Loan Revenue by 12 times from Rp 206.15 billion to Rp 3.56 trillion and decline in SiLPA as much as Rp 1.2 trillion from the previous prediction of Rp 5.5 trillion.
- The expenditure of regional financing, which was originally planned at Rp 8.34 trillion, decreased by Rp 3.89 trillion (46.68%) to Rp 8.34 trillion.
"Based on the explanation of Amendments to City Budget for Fiscal Year 2020 consisting of Local Revenue, Expenditure, and Financing, I can say that Jakarta Regional Budget (APBD) 2020 which originally planned at Rp 87.95 trillion, has been adjusted into Rp 63.23 trillion," he asserted.
"May Allah SWT always give His grace and guidance thus the Regional Regulation Draft (Raperda) on Amendments to City Budget (APBD) can be discussed, approved, and stipulated as Regional Regulations (Perda)," he closed.