Central Java Governor: Regional Development Cannot Rely Solely on APBD
Semarang (ANTARA) - The Governor of Central Java, Ahmad Luthfi, has warned that regional development efforts cannot rely solely on the Regional Budget (APBD).
“The investment sector, Regional Owned Enterprises (BUMD), and Regional Public Service Agencies (BLUD) must continue to be developed to strengthen the regional economy,” he stated in Semarang on Wednesday.
He made these remarks during a plenary session for the approval of the 2025 Regional Budget Accountability Regulation alongside the Central Java Regional House of Representatives (DPRD) at the Berlian Building, Semarang.
He noted that Central Java’s investment realisation in 2025 reached Rp110 trillion, providing employment for nearly 276,000 people. Meanwhile, in the first quarter of 2026, incoming investment reached almost Rp23 trillion, absorbing 92,000 workers.
On this occasion, he expressed his gratitude to the leadership and members of the Central Java DPRD for discussing the draft regional regulation regarding the 2025 APBD accountability, which has now been approved as a regional regulation.
“These programmes must be implementable and effective for the community,” said the former Central Java Police Chief.
Regarding the 2025 APBD accountability, the realised revenue for Central Java reached Rp23.761 trillion, while regional expenditure stood at Rp23.871 trillion. From this structure, there was a deficit of Rp109.86 billion, which was covered through net financing of Rp577.04 billion, resulting in a Budget Surplus (SiLPA) of Rp467.18 billion.
He also reported that the regional wealth of Central Java Province in 2025 reached Rp42.669 trillion, an increase of Rp2.408 trillion compared to the previous year.
He reaffirmed the Central Java Provincial Government’s full commitment to ensuring that every rupiah in the regional budget is utilised effectively for the benefit of the people.
Meanwhile, the Chairman of the Central Java DPRD, Sumanto, stated that the 2025 APBD accountability report submitted by the Provincial Government was consistent with the DPRD’s discussions and the findings of the Audit Board of Indonesia (BPK).
“Therefore, what was presented by the Governor aligns with the DPRD and the BPK findings,” he said.
He explained that the deficit within the APBD is a standard part of local government accounting management and has identified funding sources for coverage through financing.
The Central Java DPRD also provided several notes, particularly regarding the need for more planned management of the Budget Surplus (SiLPA), and requested that the local government optimise revenue without placing an undue burden on the public.
In accordance with established mechanisms, the draft regional regulation for the 2025 APBD accountability will be submitted to the Minister of Home Affairs for evaluation, which will serve as the basis for refinement before being officially enacted as a Central Java Provincial Regulation.