Regional income drops 15.81% nationally


Jakarta There has been a substantial 15.81-percent decline in the income of Indonesia’s 530 regions on account of the coronavirus pandemic, according to AsteraPrimanto Bhakti, director general of fiscal balance at the Ministry of Finance.

Astera said the average income of 530 regions before COVID-19 was Rp1,238.51 trillion, while currently, it is pegged at just Rp1,042.69 trillion, a difference of Rp195.82 trillion.

“So, the correction for income on average is indeed quite deep, that is, nationally, regional income has fallen by 15.81 percent,” he said during an online discussion on Wednesday in Jakarta.

Locally generated income (PAD) is the most depressed component of the revenue, which is down 27.73 percent due to a slowdown in economic activity that has had a direct impact on regional taxes and charges, Astera noted.

He said that Java region experienced the most severe downward pressure in PAD, of 32.04 percent, because it had the highest COVID-19 case rate.

The national average of PAD for the 530 regions before COVID-19 was Rp330.45 trillion, while currently, it stands at just Rp235.52 trillion, a difference of Rp94.93 trillion, Astera elaborated.

“The PAD can go down to 28 percent, even DKI Jakarta will (see a) drop (of) more than 50 percent or 56 percent,” he projected.

Furthermore, transfers to the regions and village funds (TKDD) before COVID-19 amounted to Rp769.12 trillion, while currently they have fallen to Rp684.55 trillion, a decline of 10.99 percent, or Rp84.56 trillion.

Meanwhile, before the COVID-19 outbreak, other aspects of supporting regional income amounted to Rp138.94 trillion, while at present, they are estimated at Rp122.62 trillion, a fall of 11.75 percent, or Rp16.32 trillion.

The regions now face the challenge of reallocating and refocusing revenue and expenditure in the Regional Budget (APBD) to deal with COVID-19, Astera continued.

On the other hand, he stated, the regional governments would receive assistance of around Rp14.7 trillion, comprising a special allocation fund (DAK) of Rp8.7 trillion, a regional incentive fund (DID) for economic recovery of Rp5 trillion, and provision of loan facilities of Rp1 trillion.

“Actually, we also have (chalked out) other support for regional governments (of) around Rp14.7 trillion,” he said.


Source: Antara News