Home Affairs Minister Urges Local Governments to Optimise Regional Budgets and Control Inflation

Home Affairs Minister Muhammad Tito Karnavian is encouraging the North Sumatra Provincial Government to increase economic growth through data-based planning, effective management of the Regional Revenue and Expenditure Budget (APBD), and consistent inflation control. He conveyed this during the opening of the Development Planning Deliberation (Musrenbang) for the Regional Government Work Plan (RKPD) of North Sumatra Province for 2027 at the Santika Dyandra Hotel in Medan, North Sumatra, on Wednesday (22/4). In his address, the Home Affairs Minister emphasised that economic growth is a primary indicator in assessing a region’s progress. He noted that although North Sumatra’s economic performance is considered good, the figures are still below the national average and thus need to be improved. He explained that low economic growth rates would only yield limited changes, whereas higher growth would have a significant impact on societal welfare. “Economic growth is a very important figure that must be mastered by all regional heads. Because it has many components, ask the district/city Central Bureau of Statistics (BPS),” he stated in a press release. The Home Affairs Minister also stressed the importance of data-based planning in driving regional economic growth. He urged local governments (Pemda) to utilise detailed data to identify problems such as poverty, unemployment, and inter-regional disparities. With this approach, development programmes can be designed more precisely, including in encouraging investment and increasing people’s purchasing power. He also reminded the importance of maintaining a balance between regional revenues and expenditures. Local governments are encouraged to increase Local Own-Source Revenue (PAD) through innovation, without burdening the public. On the other hand, the Home Affairs Minister highlighted the importance of controlling inflation as part of economic stability. He stated that inflation greatly affects the cost of living for the public, especially low-income groups.