PRR Task Force Calls for Optimisation of Regional Transfers and Inter-Regional Grants Free from Bureaucratic Red Tape

The Chairman of the Accelerated Rehabilitation and Reconstruction Task Force (Satgas PRR) for Post-Disaster Sumatra, Muhammad Tito Karnavian, has stressed the importance of optimising Regional Transfers (TKD) to accelerate recovery in areas affected by hydrometeorological disasters in Aceh, North Sumatra, and West Sumatra. According to Tito, Regional Transfers are a crucial instrument that local governments can immediately utilise to run recovery programmes while awaiting the disbursement of permanent rehabilitation and reconstruction budgets outlined in the Post-Disaster Sumatra Master Plan. The government has previously prepared an additional Rp 10.6 trillion in Regional Transfers for the three affected provinces. This support is provided to strengthen regional fiscal capacity in accelerating the recovery of basic services, infrastructure, and community economic activity after the disaster. In practice, a portion of the Regional Transfers is also channelled through an inter-regional grant mechanism. This scheme serves as a form of fiscal solidarity, especially to assist Aceh as the region experiencing the most significant impact from the hydrometeorological disaster. Through this mechanism, regions receiving large Regional Transfer allocations can grant a portion of their support to other regions that are more severely affected but have received relatively smaller budget allocations. Consequently, Tito has asked both grant-giving and grant-receiving regions to immediately settle all ongoing administrative processes. Tito observed that the distribution of inter-regional grants is still hampered by bureaucracy. In grant-giving regions, a frequent obstacle is the slow issuance of a Head of Region Regulation (Perkada) concerning Financial Assistance. Meanwhile, in grant-receiving regions, the process of drafting grant proposals as the basis for fund allocation is also not yet fully complete. ‘I am rather disappointed. Why is it so slow? The agreement was reached quite some time ago. This problem can be overcome. Firstly, the receiving districts have not yet submitted grant proposals. So, the grant giver cannot disburse funds without a grant proposal,’ Tito said during a Coordination and Evaluation Meeting on Development Achievements and Acceleration of Post-Hydrometeorological Disaster Recovery at the Aceh Governor’s Office on Tuesday. According to Tito, there is no reason for local governments to delay the completion of grant administration, especially in a disaster recovery situation that requires swift action. To accelerate the process, Tito has coordinated with Minister of Law Supratman Andi Agtas so that the Head of the Ministry of Law’s Regional Office in the affected areas can help expedite the harmonisation of the local regulations.