Indonesian Political, Business & Finance News

Home Affairs Ministry Pushes for Faster SP2D Online Implementation in Local Government Digitalisation Drive

| Source: VIVA Translated from Indonesian | Economy
Home Affairs Ministry Pushes for Faster SP2D Online Implementation in Local Government Digitalisation Drive
Image: VIVA

The Ministry of Home Affairs (Kemendagri) is continuing to push for the acceleration of the online Surat Perintah Pencairan Dana (SP2D) implementation as part of efforts to strengthen the Electronification of Local Government Transactions (ETPD). This step was discussed in a Coordination Meeting for the Acceleration of Local Government Transaction Electronification involving the Financial Services Authority (OJK), Bank Indonesia, regional development banks (BPD), local governments (Pemda), and other relevant stakeholders.

During the meeting, Director General of Regional Financial Development (Bina Keuda) Agus Fatoni emphasised that accelerating the implementation of online SP2D is a crucial instrument for achieving more transparent, accountable, effective, and digitally integrated local financial governance. “Today we can meet together to discuss and find various solutions regarding the implementation, particularly related to the acceleration of local government transaction electronification,” Fatoni said while opening the coordination meeting at the Kemendagri Office in Jakarta on Wednesday (17/6/2026).

Besides supporting the efficiency of the regional budget disbursement process, online SP2D is also part of the digital transformation of regional financial management through the Republic of Indonesia Local Government Information System (SIPD RI). On this occasion, Fatoni appreciated the local governments and BPDs that have shown commitment to supporting the implementation of online SP2D.

He stressed that the involvement of OJK in this coordination meeting aims to ensure that local governments and stakeholders understand the regulatory aspects while receiving assistance from the institution. “We deliberately invited OJK here as the regulator and mentor for banking implementation, and they will also provide direction on how we carry out this acceleration,” Fatoni stated.

Fatoni added that the management of the Regional General Cash Account (RKUD) must adhere to statutory provisions, namely Law Number 1 of 2004 concerning the State Treasury, Government Regulation Number 12 of 2019 concerning Regional Financial Management, and Minister of Home Affairs Regulation Number 77 of 2020 concerning Technical Guidelines for Regional Financial Management. “The selection of the bank managing the RKUD considers several aspects, including the bank’s reputation and health, the quality of services provided, and the benefits it can offer for regional development and economy,” he explained.

Meanwhile, OJK representative Aprianus John Risnad expressed support for the acceleration of ETPD as part of the national agenda for digitalising public financial governance. OJK considers the role of BPDs to be highly strategic in supporting the digital transformation of local government financial services. Therefore, OJK continues to strengthen BPD capacity through capital reinforcement, information technology governance, digital risk management, and synergy development through the Bank Business Group (KUB) scheme.

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