Ministry of Finance of Republic of Indonesia : Transfer to Region and Village Fund to Realize Nawacita

Jakarta, 13/01/2016 MoF - Government and the House of Representatives (DPR) agreed to set budget allocation for transfer to region and village fund at IDR764.9 trillion. The budget is exceeded the Ministries/Institutions (K/L) budget.

As known, the transfer to region and village fund is part of fiscal decentralization and regional autonomy that is used to reformulate the structure of the financial relationship between central and local government. It aims to improve the efficiency and effectiveness of resource allocation and utilization.

In the National Working Meeting of the Ministry of Finance on Monday, Director General of Fiscal Balance, Ministry of Finance, Boediarso Teguh Widodo, delivered Transfer to Region and Village Fund Policy themed 'Evaluation of the 2016 Revised State Budget and 2017 State Budget Implementation Challenges'.

He further said that since 2016, the budget of Transfer to Region and Village Fund is greater than the K/L's expenditure budget. The figure is maintained in the 2017 State Budget by allocating the budget of transfer to Region and Village Fund at IDR764.9 trillion, while for K/L is set at IDR763.6 trillion.

The increase is intended to realize the third Nawacita proclaimed by the President Joko Widodo; building Indonesia from the periphery by strengthening the regions and villages within the framework of the Unitary Republic of Indonesia. (ab/rsa)