ADPSI urges regions to optimise assets amid transfer fund cuts

Bandung (ANTARA) - The Association of Provincial DPRD of Indonesia (ADlar) is urging local governments to undertake various creative breakthroughs, including the optimisation of productive assets, to face the impact of reduced transfer funds from the central government.

According to the Chairman of the Association of Provincial DPRD of Indonesia (ADPSI), Buky Wibawa, strengthening regional fiscal measures was one of the primary issues discussed during the ADPSI National Working Meeting (Rakernas) in Bali on Monday.

Buky, who also serves as the Chairman of the West Java DPRD, acknowledged that the reduction in central transfer funds has been felt by several regions and is impacting the fiscal capacity of local governments.

However, he stated that budget constraints should not serve as an excuse for hindering development or public services.

He cited as an example that one step local governments could take is to re-inventory assets that are not yet productive, so they can be utilised optimally to increase Local Original Revenue (PAD).

According to Buky, more productive asset management is essential so that regions possess stronger financing sources and are not entirely dependent on central government transfers.

Furthermore, such steps are considered capable of helping regions align development programmes with national priorities, including supporting the implementation of President Prabowo Subianto’s ‘Asta Cita’ in accordance with the specific characteristics of each region.

Meanwhile, the Chairman of the Bali DPRD, Dewa Made Mahayadnya, stated that the ADPSI National Working Meeting, attended by more than 240 participants from various provinces, also serves as a forum to convey various regional aspirations regarding national fiscal policy.

According to him, regions that rely on the tourism sector, such as Bali, require special attention in fiscal policy formulation because their contribution to national foreign exchange is not always reflected in revenue-sharing schemes in the same way as natural resource-producing regions.

“Tourism cannot be calculated in the same way as agricultural or mining products. However, in terms of foreign exchange, Bali provides a very significant contribution to the country,” said Dewa Made.