Minister of Finance Brings Ammunition of Rp330 Trillion to Fight Inflation in 33 Regions, Who Gets the Most?

Dream - The Ministry of Finance (MoF) provides fiscal incentives for 33 Regional Governments (Pemda) with a total of Rp330 trillion. These incentives are given in the context of controlling regional inflation for the first period of the 2023 fiscal year.

"In this first period, the total allocation given is Rp330 billion, with the highest allocation being Rp12.29 billion (Kab. Banyuwangi), and the lowest being Rp8.892 billion," said the Director General of Financial Balance of the MoF, Luky Alfirman, in the Handover of Fiscal Incentives for Performance Category of Inflation Control in the Region, Monday, July 31, 2023.

The provision of these incentives is based on the Minister of Finance's Decree Number 271 of 2023 concerning the Details of Fiscal Incentive Allocation for Current Year Performance for Performance Categories in the Context of Controlling Regional Inflation in the 2023 Fiscal Year First Period According to Province/District/City.

These fiscal incentives are expected to fund activities related to the community, support inflation control, reduce stunting, increase investment, and eliminate extreme poverty.

Here are the details of each of the 33 Regional Governments that received fiscal incentives:

- Gorontalo Province Rp 8,982,597,000

- Gunungsitoli City Rp 8,982,661,000

- Serang City Rp 9,003,751,000

- Payakumbuh City Rp 9,138,406,000

- Central Kalimantan Province Rp 9,340,027,000

- Banyuasin Regency Rp 9,454,033,000

- South Halmahera Regency Rp 9,480,979,000

- Indragiri Hilir Regency Rp 9,492,022,000

- Gayo Lues Regency Rp 9,506,496,000

- West Aceh Regency Rp 9,532,909,000

- Sintang Regency Rp 9,560,837,000

- Bungo Regency Rp 9,565,349,000

- South Aceh Regency Rp 9,589,276,000

- Ogan Ilir Regency Rp 9,591,545,000

- Greater Aceh Regency Rp 9,597,631,000

- Jepara Regency Rp 9,664,190,000

- North Bengkulu Regency Rp 9,680,149,000

- Pohuwato Regency Rp 9,891,162,000.

- North Kayong Regency Rp 9,943,767,000

- South Minahasa Regency Rp 9,980,079,000

- Bekasi Regency Rp 10,015,718,000

- Sukamara Regency Rp 10,019,416,000

- Sleman Regency Rp 10,021,848,000

- East Halmahera Regency Rp 10,275,276,000

- Central Bangka Regency Rp 10,310,410,000

- Dumai City Rp 10,353,065,000

- Garut Regency Rp 10,634,802,000

- Merangin Regency Rp 10,820,277,000

- Langsa City Rp 10,844,657,000

- Pangandaran Regency Rp 11,081,589,000

- DKI Jakarta Province Rp 11,677,376,000

- Bitung City Rp 11,677,460,000

- Banyuwangi Regency Rp 12,290,240,000

Previously, Minister of Finance Sri Mulyani Indrawati said that there are two main contributors to inflation based on categories. They are volatile food inflation and government-determined prices for goods/services (administered price).

Therefore, to maintain price stability, the central government mobilizes regional governments (pemda) to intervene in addressing inflation in each region. Considering that food prices, for example, can determine the level of national inflation.

"If we can maintain or preserve price stability for food, it will greatly determine our controlled inflation rate. That's why coordination with regions is being conducted," said Sri Mulyani in the program Sapa Indonesia Pagi on Kompas TV, Jakarta, Wednesday, September 7, 2022.