Gerindra: Local Governments Can Access Innovative Financing from Central Government
The Chair of the Gerindra Party Faction in the House of Representatives (DPR RI), Budisatrio Djiwandono, stated that local governments can now access innovative financing instruments sourced from central government investment operators.
This access can be facilitated once the 2027 State Budget (APBN) Law is ratified. According to Budisatrio in a statement in Jakarta on Wednesday, this innovation is an initiative by the Gerindra Party to advocate for regional development agendas while remaining mindful of the State Budget’s capacity.
“We understand that the State Budget has limitations, especially amidst various global challenges and uncertainties, but regional development must not be hindered,” he said.
He explained that the 2027 APBN Law will allow local governments to have access to financing for various strategic development programmes without reducing national fiscal capacity. He also recognised the importance of budget availability and flexibility to ensure that regional development programmes can run at maximum capacity and provide direct benefits to the community.
“I am obligated and will continue to fight for regional fiscal interests to ensure they are optimally accommodated,” Budisatrio added.
He also expressed his appreciation and support for the government’s steps to continue strengthening the fundamentals of the State Budget, particularly regarding revenue, by increasing the tax ratio target to 10.4 per cent of GDP by 2027 to support various strategic programmes at both national and regional levels.
He assessed that increasing the tax ratio is a vital foundation for the State Budget, ensuring that the financing capacity for various programmes at the central and regional levels, which directly impact the public, can continue to be enhanced.
“The Gerindra Party Faction will continue to oversee the agenda to ensure that the increase in state tax revenue proceeds optimally and is carried out without increasing the tax burden on the public and the business world,” said Budisatrio.