Politics · Indonesia · 11 hrs ago
Prabowo plans extra funding for Indonesian provincial capitals and regencies
President Prabowo Subianto plans extra funding for local governments in Indonesia.
He said each provincial capital would receive an additional Rp100 billion, while each regency would get at least Rp20 billion.
Larger regencies with greater needs could receive more, and Prabowo plans to meet governors and regents to discuss how the money will be distributed.
He says the funds will come from savings in government purchasing, which he considers inefficient and vulnerable to inflated prices.
Government buying of goods and services accounts for about Rp1,200 trillion of the state budget, and Prabowo says roughly 30 percent could potentially be saved.
The government plans to combine purchasing across agencies and regions so that goods with the same specifications and quality are bought at uniform prices.
Prabowo says the savings will be returned to regional governments and the public, but the sources do not give a timetable for the funding or procurement changes.
President Prabowo Subianto plans to allocate an additional Rp100 billion for each provincial capital and at least Rp20 billion for each regency.
He said the funds are ready and will be disbursed in the near future, but gave no exact date.
Prabowo said the allocations would come from savings made by reducing waste in government procurement.
He cited an estimated Rp1,200 trillion in government spending on goods and services, saying about 30 percent could be lost through markups and corruption.
He plans to meet governors and regents to discuss the funds and said regencies with greater needs could receive more than the minimum.
- Who
- President Prabowo Subianto announced the planned allocations.
- What
- Each provincial capital is to receive an additional Rp100 billion, and each regency at least Rp20 billion. Larger regencies may receive more.
- When
- Prabowo said the funds would be disbursed in the near future. He did not give an exact date.
- Where
- He made the announcement in Palu, Central Sulawesi, at the opening of the 114th Muhammadiyah Tanwir and anniversary celebrations.
- Why
- The funds are to be financed by savings from government spending and directed to regional needs.
This story does not have two clearly opposing sides.
Prabowo announced the planned regional allocations at a Muhammadiyah event in Palu.
Prabowo plans to disburse the funds and convene governors and regents to discuss their distribution.
- Provincial capital allocation
- Rp100 billion each
- Regency allocation
- At least Rp20 billion each
- Government goods and services spending
- Approximately Rp1,200 trillion
- Potential savings from procurement waste
- About Rp400 trillion, according to Prabowo
- Procurement savings estimate
- Up to 40 percent, according to Prabowo
4 sources
What people are saying
Each province will soon receive an additional Rp100 billion for its provincial capital, while each regency will receive at least Rp20 billion
All public money must be spent at the same price, with the same specifications and the same quality
So these savings will all be handed over to the regions, handed over to the people