Indonesian Political, Business & Finance News

Ponorogo accelerates development projects to boost 2026 budget absorption

| Source: ANTARA_ID Translated from Indonesian | Economy
Ponorogo accelerates development projects to boost 2026 budget absorption
Image: ANTARA_ID

The Ponorogo Regency Government in East Java is accelerating the realisation of development projects that were delayed in the previous fiscal year as an effort to increase the absorption of the 2026 Regional Revenue and Expenditure Budget (APBD), following a 2025 Budget Financing Surplus (Silpa) that reached Rp96 billion. Acting Regent of Ponorogo Lisdyarita stated on Wednesday that a portion of the Silpa originated from several activities and projects that could not be realised because they still required evaluation at the end of the budget year. “There is indeed an increase in Silpa compared to the previous year. This is because several activities and projects had to be re-evaluated, so their budgets could not yet be realised,” she said. According to Lisdyarita, the results of the evaluation serve as material for improvement so that the planning and implementation processes for programmes this year run more effectively, allowing the benefits of development to be felt immediately by the community. Meanwhile, Ponorogo Regional Secretary Agus Sugiarto said the local government is prioritising the acceleration of project implementation, particularly infrastructure development and other strategic activities, to improve the quality of budget absorption. He explained that besides being influenced by the evaluation of several activities, the size of the Silpa is also related to the non-implementation of several infrastructure projects and the realisation of the Special Allocation Fund (DAK) and the Tobacco Products Excise Revenue Sharing Fund (DBHCHT). “There were several infrastructure works that we could not carry out last year due to various considerations. In addition, the realisation of the DAK and the tobacco excise revenue sharing fund also affected the size of the Silpa,” he said. Nevertheless, Agus assessed that the APBD management performance remains relatively good. Out of Ponorogo’s total APBD of approximately Rp2.4 trillion, regional expenditure realisation in 2025 reached around 90 percent. The Ponorogo Regency Government is targeting an increase in the APBD absorption level in 2026 to exceed 95 percent through the acceleration of the procurement of goods and services and the implementation of development projects. “This year, programme implementation will be accelerated. We hope that the 2026 APBD absorption can be above 95 percent so that the available budget is truly felt by the community,” Agus said.

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