Ayomi Amindoni – President Joko "Jokowi" Widodo has urged local governments to accelerate budget spending to boost both local and national economic growth.
The President, speaking during a meeting with representatives of local governments at the State Palace on Friday, said that disbursing funds from the beginning of the year would, as well as aiding the economy, improve the quality of infrastructure projects funded by both state and regional budgets.
"Local leaders should ensure funds are disbursed at the beginning of the year so construction can be started in February," Jokowi said.
He also stressed the importance of the continuity of budget reform as, while the country's budget has experienced significant growth in recent years, productivity capacity remains stagnant because of non-productive spending on operational expenditure and goods.
Therefore, Jokowi said, all local governments need to reduce operational expenditure such as travel expenses, meetings and seminars.
The President stressed that the old paradigm of money following function should be abandoned, replaced with money following program. "All units must also focus on priority programs that have a major impact," he went on.
Jokowi also called on local governments to prioritize spending on domestic goods and reduce the use of imported goods. (bbn)