Ministry of Finance of Republic of Indonesia : Regional Transfer Fund Shows an Increasing Trend

Jakarta, 29/01/2015 MoF - In line with economic growth and development of the State Budget (APBN),  transfer to the region continues to show an increasing trend from year to year.

At the beginning of fiscal decentralization, regional transfer fund was only IDR82.4 trillion. In 2015, it reaches IDR664.1 trillion in Draft of Revised State Budget 2015, equivalent to one third of the total state budget expenditure.

Transfer of funds to the regions is a logical consequence of the authority delegation to the local government. In addition to this, local revenue source is also coming from taxes and levies.

Taxes and levies are is considered to reflect the region's autonomy. Therefore, to increase the independence of the region, the central government seeks to strengthen local taxation authorities (local taxing power ).

"How to optimize PAD (Regional Income) in the region, how is the taxing power," said Vice Minister of Finance Mardiasmo in the Opening of Research Assistance Team Seminar, Ministry of Finance Sector Fiscal Decentralization (TADF) 2014 today (29/1) in Jakarta. (nv)