Indonesian Political, Business & Finance News

Jakarta's Democratic-Perindo Faction Flags Problematic RT-RW Funds and Swelling Budget Surplus

| Source: ANTARA_ID Translated from Indonesian | Politics
Jakarta's Democratic-Perindo Faction Flags Problematic RT-RW Funds and Swelling Budget Surplus
Image: ANTARA_ID

The Democratic-Perindo Party faction of the Jakarta DPRD has highlighted a number of findings, including the management of neighbourhood unit (RT) and community unit (RW) funds deemed problematic and a bloated Budget Surplus (SiLPA) reaching IDR 5.82 trillion. “The BPK found non-compliant use of funds in 1,150 RTs worth IDR 6.206 billion and 137 RWs worth IDR 969.360 million. In addition, there are still 158 RTs and 20 RWs that have not submitted reports,” said Ali Muhammad Johan, Chairman of the Democratic-Perindo Party faction, during a plenary meeting on the accountability report for the 2025 fiscal year on Thursday. Ali stated that RTs and RWs are the front line of government services in direct contact with citizens, so every budget allocation must be managed transparently, orderly, and accountably. According to him, the findings are a serious concern because the Jakarta Provincial Government has continued to increase budget support for RTs and RWs in recent years. The faction supports improving the welfare of RT and RW officials, but the budget increase must be followed by improved administrative capacity, stronger accountability mechanisms, and more effective supervision. The faction requested that the Jakarta Provincial Government ensure all RTs and RWs receive adequate assistance to carry out administration and financial management according to regulations. He revealed that the Integrity Assessment Survey Index for the Jakarta Provincial Government only reached 71.08, still below the target of 80. Meanwhile, the BPK also found non-compliant salary and allowance payments for civil servants totalling IDR 2.122 billion. “These findings indicate there is still room for improvement in internal supervision, administrative compliance, and personnel management control,” he said. The faction urged the Jakarta Provincial Government to strengthen internal oversight, improve regulatory compliance, and build a work culture that upholds integrity, professionalism, and the quality of public services. Ali also highlighted the increase in the 2025 SiLPA, which reached IDR 5.82 trillion, up from IDR 4.43 trillion in 2024. He argued that a large SiLPA should not be seen merely as an indicator of successful regional financial management; rather, it could reflect unimplemented programmes, delayed activities, or budgets not optimally utilised for public needs. This assessment aligns with the 2025 regional expenditure realisation, which only reached 88.51 percent, and capital expenditure at 86.22 percent. Despite these criticisms, the faction appreciated the Jakarta Provincial Government’s generally healthy fiscal condition, noting total assets of IDR 758.57 trillion against liabilities of IDR 17.97 trillion.

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