APBD 2023 Grows Optimally, City Gears Up to Make Jakarta a Global City

Amid global and domestic economic conditions still being hit by the impact of the COVID-19 pandemic and the El-Nino phenomenon, the Jakarta Provincial Government's 2023 City Budget (APBD) performance can grow optimally.

Its realization spending in 2023 will reach 92.54 percent or Rp 66.7 trillion

It cannot be separated from the hard work of prudent, quality, transparent, and accountable budget management to create Jakarta as a Global City.

This optimal performance can be seen in the realization of regional income until 31 December 2023 reaching Rp 71 trillion or the equivalent of 100.53 percent of the target by Rp 70.6 trillion. This achievement has increased by Rp 3.7 trillion compared to the realization of local income in 2022 by Rp 67.3 trillion. Based on the percentage of the budget, there is an increase of 14.03 percent compared to 2022, which was realized at 86.5 percent.

City of Jakarta Has Advantage of Becoming a Global City

Jakarta Acting Governor, Heru Budi Hartono said that the local income realization that exceeded the target was generally partly supported by improving macroeconomic conditions, increasing economic growth, and a controlled inflation rate.

"Various fiscal policy incentives implemented in Local Tax policies, such as providing incentive policies for Rural and Urban Land and Building Tax (PBB P2) and Motor Vehicle Tax (PKB) are also drivers of achieving targets," he explained in Jakarta, Monday (1/8).

He went on to say that the local income realization was from Local Income (PAD) realized at Rp 49.1 trillion or reached 101.46 percent of the target by Rp 48.4 trillion. This PAD consisted of the Regional Tax post realized at Rp 43.5 trillion (101.2 percent), the Regional Wealth Management Results post which was realized at Rp 545.8 (100 percent), and the Miscellaneous Legitimate PAD post which was realized at Rp 4.6 trillion (104.47 percent), and the realized Regional Levy amounted to Rp 454 billion (98.26 percent).

Then local income from Central Government Transfer Revenue was realized at Rp 20.2 trillion (99.68 percent). Meanwhile, other legitimate local income was realized at Rp 1.7 trillion (86.69 percent).

"Its realization spending in 2023 will reach 92.54 percent or Rp 66.7 trillion from the budget amounting to Rp 72.1 trillion. This achievement is based on a percentage of the budget, there is an increase of 8.27 percent compared to 2022. Where in 2022, the realization will be 84.27 percent or reaching Rp 64.8 trillion," he expressed, as quoted by Jakarta Government's press release.

It consisted of the Realized Operational Expenditure post of 57.5 trillion (95.31 percent), which came from Employee Expenditures, Goods and Services Expenditures, Interest Expenditures, Subsidy Expenditures, Grant Expenditures, and Social Assistance Expenditures.

In the meantime, the realization of regional expenditure originating from the Capital Expenditure Realization post amounted to Rp 8.8 trillion (81.62 percent), which consisted of Land Capital Expenditure, Equipment and Machinery Capital Expenditure, Building and Construction Capital Expenditure, Capital Expenditure Roads, Networks and Irrigation, Capital Expenditures on Other Fixed Assets, and Financial Assistance Expenditures realized amounted to Rp 356.4 billion (100 percent).

The realization of regional financing revenues up to December 31 reached Rp 8.8 trillion (99.96 percent). As for the realization of regional financing expenditure until December 31, it reached Rp 6.6 trillion or 89.16 percent of the budget of Rp 7.4 trillion. This achievement has increased by Rp 2.1 trillion compared to the realization of regional financing expenditure in 2022 which reached Rp 4.5 trillion. Based on the percentage of the budget, there is an increase of 11.64 percent compared to 2022 which was realized at 77.52 percent.

The regional financing expenditure post consists of the Regional Capital Participation (PMD) post which was realized at 88.45 percent and the payment of principal debt installments that were due was realized at 100 percent. With the realization of income, expenditure, and financing as mentioned above, the 2023 Budget Surplus Remaining (SILPA) will reach the budget of Rp 6.6 trillion.

When compared with the SILPA 2022 by Rp 8.6 trillion, there was an increase in the optimization of APBD expenditure with a decrease in SILPA of Rp 2 trillion compared to the SILPA 2022.

"The Jakarta Government is committed to managing the APBD following good governance rules that are accountable and transparent, as well as prudent and of high quality. So, the APBD can become a reliable instrument that supports the business world, while protecting the community, and is successful in encouraging Jakarta's economic growth and making Jakarta a Global City," he uttered.