ADPSI urges regions to optimise assets amid transfer fund cuts

The Association of Indonesian Provincial Councils (ADPSI) is encouraging regional governments to make creative breakthroughs, including optimising productive assets, to address the impact of reduced transfer funds from the central government. According to ADPSI Chairman Buky Wibawa, the strengthening of regional fiscal capacity was one of the main issues discussed at the ADPSI National Working Meeting in Bali on Monday. Wibawa, who also serves as Chairman of the West Java DPRD, acknowledged that the reduction in central transfer funds has already been felt by a number of regions and has affected their fiscal capacity. However, he stated that budget constraints should not be an excuse for hampering development or public services. He cited the example of regional governments re-inventorying unproductive assets to then be optimally utilised to increase locally-generated revenue (PAD). According to Wibawa, more productive asset management is important so that regions have stronger sources of financing and are not entirely dependent on central transfer funds. This step is also considered capable of helping regions align their development programmes with national priorities, including supporting President Prabowo Subianto’s Asta Cita vision according to the characteristics of each region. Meanwhile, Bali DPRD Chairman Dewa Made Mahayendra said the ADPSI national meeting, attended by more than 240 participants from various provinces, also served as a forum to convey regional aspirations regarding national fiscal policy. He noted that regions reliant on the tourism sector, such as Bali, require special attention in fiscal policy formulation because their contribution to the country’s foreign exchange is not always reflected in the revenue-sharing scheme, unlike regions producing natural resources. ‘Tourism cannot be calculated like agricultural or mining products. However, in terms of foreign exchange, Bali makes a very large contribution to the country,’ said Dewa Made.