City Signs MoU with Asian Development Bank

Jakarta Provincial Government and Asian Development Bank (ADB) will hold cooperation in the sector of Regional Original Revenue (PAD) administration transformation. This cooperation is conducted to realize city government’s financial management that is more modern, efficient, and effective so there would be no more PAD leakage in the future.

They believe that to realize good development in ASEAN, the economic key is in Indonesia

Jakarta Vice Governor Basuki T Purnama said there are many benefits gained from this cooperation which focused on the sharing of human resources (SDM) as well as system and technology to improve the capability and credibility of Jakarta Tax Services Department. Moreover, Indonesia is the economic key in ASEAN. This is seen from the property value that keeps increasing.

“I think this is a good step. But, it is only an initial phase. They believe that to realize good development in ASEAN, the economic key is in Indonesia. Just look at our property value, never decreasing,” stated Basuki after the signing of Memorandum of Understanding (MoU) at City Hall, Friday (8/15).

Basuki: Jakarta to Be World’s Mega City

With this cooperation, Basuki hopes tax system in the capital city to be more transparent. Based on analysis result, accommodated taxpayers in Jakarta are only 60 percent. Whereas, the potential of city budget (APBD) in big city like Jakarta per year could reach Rp 120 trillion. However, he doubt Jakarta Provincial Government could spend that amount of money.

“Rp 72 trillion cannot be spent, moreover Rp 120 trillion,” he expressed.

According to Basuki, ADB is one of Jakarta Provincial Government’s partners in developing the city. They are chosen because they have good understanding in financial services.

“Including by comparing our tax system with other countries’ tax systems. So, sharing must be done. We’re lucky they (ADB) will help with their experiences. So, we don’t need to do comparative study. Just tell them to come here,” he uttered.

Meanwhile, Indonesia ADB Director, Adrian Ruthenberg, admitted that Jakarta Provincial Government is an example of a modern, efficient, and effective PAD management administration carried out.

“The need for qualified public services indeed needs investment in infrastructure sector which source of funding is expected to come from PAD,” he told.