{
    "success": true,
    "data": {
        "id": 1684365,
        "msgid": "trenggalek-regent-reduce-employee-spending-proportion-to-strengthen-regional-budget-1776430332",
        "date": "2026-04-17 18:39:27",
        "title": "Trenggalek Regent: Reduce Employee Spending Proportion to Strengthen Regional Budget",
        "author": "",
        "source": "CNN_ID",
        "tags": "",
        "topic": "Finance",
        "summary": "Trenggalek Regent Mochamad Nur Arifin has outlined two key strategies to lower the proportion of employee spending in the regional budget, which currently stands at 42% and exceeds the national cap of 30% mandated by the HKPD Law for full implementation by 2027. He emphasised the need to either cut expenditures or boost revenues, particularly through optimising local taxes and levies, to create more fiscal space for public development initiatives. Recent data shows an increase in local own-source revenue from Rp280 billion to Rp353 billion, but further acceleration is required to balance the budget and ensure compliance with national regulations.",
        "content": "<p>Trenggalek Regent Mochamad Nur Arifin (Mas Ipin) stated that the\nTrenggalek Regency Government (Pemkab) can take at least two steps to\nreduce the proportion of employee spending. Previously, it was known\nthat employee spending has now reached 42% of the total Regional Revenue\nand Expenditure Budget (APBD). Meanwhile, the central government has set\na maximum limit of 30%, which will apply fully in 2027. \u201cThe HKPD Law\nrequires us to ensure that employee spending does not exceed 30% in the\nfuture,\u201d said Mas Ipin. He stated that Pemkab Trenggalek must strive to\nrestore a healthy budget structure. This step is crucial so that\nTrenggalek\u2019s APBD structure is not continuously dominated by routine\nspending. Thus, the government can open up wider fiscal space for\nimplementing various public development programmes. \u201cIf we want the\nproportion to decrease, there are only two options. We reduce the\nspending, or we increase the revenues,\u201d he said. To that end, Mas Ipin\nhopes that the new Head of the Regional Financial and Asset Agency\n(BPKPD), Edi Santoso, can explore local revenue potential, especially\nfrom the tax and levy sectors. \u201cHe has a deep understanding of the\nbusiness landscape and taxpayer potential. This expertise is important\nfor optimising Local Own-Source Revenue (PAD),\u201d said Mas Ipin. The\nlatest data from Pemkab Trenggalek records an increase in PAD from Rp280\nbillion to Rp353 billion. However, this increase has not yet been\nsufficient to balance the budget structure that is still burdened by\nemployee spending. In this regard, Pemkab is urged to make PAD\noptimisation the main focus in the medium-term strategy towards the 2027\ntarget. In line with the Regent\u2019s instructions, Pemkab Trenggalek is now\nmoving quickly to prepare follow-up steps together with BPKPD, namely\nensuring that the budget proportion adjustment is achieved on time in\naccordance with national regulations. Mas Ipin reminded that if the\ngovernment fails to anticipate this situation, the high employee\nspending risks limiting the region\u2019s ability to finance infrastructure\ndevelopment and public services. With the limited time available, Pemkab\nTrenggalek is asked to accelerate efforts to maintain regional financial\nstability until the deadline arrives.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/trenggalek-regent-reduce-employee-spending-proportion-to-strengthen-regional-budget-1776430332",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}