Samarinda Mayor Promotes Fiscal Reform to Mitigate Budget Reductions

Samarinda Mayor, Andi Harun, is pushing for fiscal reform through efficiency and the strengthening of Regional Original Income (PAD) as a mitigation strategy amidst narrowing regional budget capacities to ensure public welfare. According to Andi Harun in Samarinda on Sunday, the decline in fiscal capacity due to global economic conditions requires local governments to make bold, tactical decisions that favour the people.

“We cannot force all spending to align with the regional head’s vision and mission. We must be able to reduce spending, especially those that can be postponed,” stated Andi Harun during the Public Dialogue ‘Reading the Fiscal Portrait of East Kalimantan 2027’ organised by IKA PMII Kaltim in Samarinda. Andi Harun emphasised that complex fiscal figures must be translated into policies that impact human lives, with the primary focus being to ensure that public funds truly return to and benefit the wider community.

“I would consider it a sin if the Regional Budget (APBD) is large, but its benefits for the community are minimal,” said Andi Harun. As a concrete and radical step, the Samarinda City Government has drastically cut official food and beverage expenses, which previously reached IDR 98 billion. Non-urgent ceremonial activities are undergoing a total evaluation. Furthermore, official travel budgets have been extremely tightened and are now allocated at approximately IDR 7 billion, with management centralised under the Regional Secretariat.

“If a department head wishes to undertake an official trip, it must be subject to direct approval from the regional head. This is our method of extreme efficiency,” explained Andi Harun. This austerity action began with the Mayor himself; from January to August 2026, Andi Harun reported undertaking only two official trips for highly urgent agendas. He even refused to use state facilities when invited as a speaker outside the region, opting to use personal funds. “As a leader, we must set a good example for our subordinates,” he noted.

In addition to cutting expenditures, Andi Harun is strengthening the foundation of regional fiscal health through PAD, which currently stands at around IDR 1.2 trillion. He is driving Regional Owned Enterprises (BUMD) to become self-sufficient and act as new economic drivers. “BUMDs must no longer be a burden relying on the APBD, but must instead generate profits for the region,” he said, noting that almost all of Samarinda’s BUMDs are now making real contributions to regional revenue.

Regarding the pursuit of budget allocations from the central government, Andi Harun instructed his staff to present strong arguments and data rather than mere political complaints. This science-and-data-based approach, involving academics, is also being applied to address issues of under-distributed funds. “The struggle with the central government must be based on a clear platform. The narrative must be supported by valid data reflecting objective field conditions, not just political narratives,” asserted Andi Harun.

These ideas received a positive response from Member of the Indonesian House of Representatives (DPR RI), Syafruddin. He stated that the struggle for regional fiscal interests continues in Jakarta, including direct representation during a Hearing (RDP) with the Minister of Finance. While acknowledging the current state of the State Budget (APBN) faced by the central government, Syafruddin appreciated Andi Harun’s choice to implement fiscal mitigation at the local level. “The performance of the Mayor of Samarinda deserves appreciation; regional heads in East Kalimantan can learn from what the Mayor of Samarinda is doing currently,” said Syafruddin.