Maximising Efforts Despite Fiscal Constraints

The issuance of Presidential Instruction (Inpres) No. 1 of 2025 on the Efficiency of State Revenue and Expenditure Budget (APBN) and Regional Revenue and Expenditure Budget (APBD) expenditure presents a challenge for every ministry or agency under the Red and White Cabinet, including local governments. Local governments must devise strategies to ensure programmes continue to run optimally and reach the community, despite severely limited fiscal space. This reality is faced by the Banda Aceh City Government led by Mayor Illiza Sa’aduddin Djamal. At the start of her leadership, challenges came not only from the narrow fiscal space but also from the previous administration’s debt of Rp 39 billion, which has now become her responsibility. This situation did not hinder Banda Aceh’s development. In the first 100 days of her tenure, Mayor Illiza successfully settled all that past debt. “In very challenging fiscal conditions, we implemented budget priorities,” she said. “Through the preparation of budget revisions, we could make efficiencies.” According to her, this step has driven the realisation of various programmes to improve the quality of life for Banda Aceh residents. This is evident from data from the Central Statistics Agency (BPS) showing that Banda Aceh’s Human Development Index (IPM) in November 2025 reached 89.55 points, the highest nationally. Mayor Illiza stated that this achievement is inseparable from various programme interventions focused on meeting the basic needs of the community, particularly in reducing poverty rates. When the Banda Aceh City Government focused on lowering poverty rates, she explained, these efforts intersect with improving health access, enhancing human resources (HR), and opening economic access. In improving health access, the Banda Aceh City Government has introduced various programmes. Starting from addressing nutrition for pregnant women with chronic energy deficiency (KEK) and malnourished toddlers to curb stunting, mobile community health centre services, the Dokter Saweu Sikula programme, and improvements to health facilities, including the inauguration of the Al-Huda Inpatient Building as a manifestation of priority development in the health sector. Although health services continue to be enhanced, communicable diseases such as AIDS, TB, and malaria remain a shared challenge. Therefore, the Banda Aceh City Government has established the ATM Working Group, an acronym for the AIDS, TB, and Malaria Working Group. “Through this working group, the government conducts increased active screening at the district and community levels, strengthens surveillance to detect cases early, and ensures monitoring and handling are more directed,” she said. Besides the health sector, superior human resources are promoted through the establishment of the Banda Aceh Academy (BAA) as a bridge in producing skilled workers and a community hub capable of generating highly competitive innovative products. BAA receives support from Syiah Kuala University and one of the UN agencies, namely the International Labour Organization (ILO), which focuses on employment. Through this collaboration, BAA not only focuses on job training but is also directed towards developing local creative economic potential. One flagship product is perfume, which is now being promoted as the city’s new identity. She explained that Banda Aceh has great potential in the fragrance industry because it is one of the world’s best patchouli producers, the raw material for making perfume. Mayor Illiza hopes that the programmes already running can have a broader impact on the community through increased synergy, collaboration, and communication with various stakeholders.