JAKARTA (TheInsiderStories) - President Joko Widodo hands over the Budget Implementation List (DIPA) for 2016 and awards regional governments that have best utilized the Regional Incentive Funds (DID) at the State Palace, Jakarta on Monday (14/12).
Submission of DIPA 2016 is the beginning of a series of processes implementation of the State Budget for Fiscal Year 2016 which has been approved by the House of Representatives in late October, with the intention that the implementation process of development and disbursement can take place faster, more evenly, and will carry multiplier effect on the economic activities.
In his speech, the President highlighted that based on an agreement between the government and the House of Representatives, the State spending in 2016 State Budget is set at Rp 2,095.7 trillion ($149.69 billion), up 5.6 percent compared to the 2015 Revised State Budget.
“I demand that the implementation of the various activities that had been planned in 2016 can begin in January. The old patterns that our budget absorption accumulates in November or December must be ended,” the President said.
According to him, of the total State Budget of Rp 2095.7 trillion, as much as 37.4 percent or about Rp 784.1 trillion are the expenditures of ministries and government agencies, 36.7 percent or about Rp 770.2 trillion and funds will be transferred to regional governments and villages, while the remaining 25.8 percent or about Rp 541.4 trillion are allocated by the Finance Ministry as the state Treasurer.
To all ministries, agencies and local leaders, the president emphasized that he will continue to monitor areas that record low level of budget absorption as well as areas that accumulate funds in banks and local enterprises. Therefore, the President expects ministries and government agencies to tender projects immediately and begins activities in 2016 immediately so that development activities can be effective. (*)