Trenggalek Regent: Reduce Employee Spending Proportion to Strengthen Regional Budget

Trenggalek Regent Mochamad Nur Arifin (Mas Ipin) stated that the Trenggalek Regency Government (Pemkab) can take at least two steps to reduce the proportion of employee spending. Previously, it was known that employee spending has now reached 42% of the total Regional Revenue and Expenditure Budget (APBD). Meanwhile, the central government has set a maximum limit of 30%, which will apply fully in 2027. “The HKPD Law requires us to ensure that employee spending does not exceed 30% in the future,” said Mas Ipin. He stated that Pemkab Trenggalek must strive to restore a healthy budget structure. This step is crucial so that Trenggalek’s APBD structure is not continuously dominated by routine spending. Thus, the government can open up wider fiscal space for implementing various public development programmes. “If we want the proportion to decrease, there are only two options. We reduce the spending, or we increase the revenues,” he said. To that end, Mas Ipin hopes that the new Head of the Regional Financial and Asset Agency (BPKPD), Edi Santoso, can explore local revenue potential, especially from the tax and levy sectors. “He has a deep understanding of the business landscape and taxpayer potential. This expertise is important for optimising Local Own-Source Revenue (PAD),” said Mas Ipin. The latest data from Pemkab Trenggalek records an increase in PAD from Rp280 billion to Rp353 billion. However, this increase has not yet been sufficient to balance the budget structure that is still burdened by employee spending. In this regard, Pemkab is urged to make PAD optimisation the main focus in the medium-term strategy towards the 2027 target. In line with the Regent’s instructions, Pemkab Trenggalek is now moving quickly to prepare follow-up steps together with BPKPD, namely ensuring that the budget proportion adjustment is achieved on time in accordance with national regulations. Mas Ipin reminded that if the government fails to anticipate this situation, the high employee spending risks limiting the region’s ability to finance infrastructure development and public services. With the limited time available, Pemkab Trenggalek is asked to accelerate efforts to maintain regional financial stability until the deadline arrives.