The central government encourages local governments not to be late in approving Regional Budget Plan (RAPBD) into the actual Regional Budget. It is intended so that local development planning process runs smoothly and not hampered due to the impending money in the bank. "If the money still remains in the bank, it will be difficult to improve the welfare of the community immediately. Eventually this is what must be changed," said Ministry of Finance Director General of Fiscal Balance, Dr. Marwanto Hardjowiryono, M.A, in the National Economics and Finance Seminar 'The Role of Government and Banking in Improving the Development of Quality Economic Growth in National and Regional Level'. The Seminar was held at the Graduate School of UGM on Monday (16/5).
On that occasion, Marwanto presented as a keynote speaker representing the Minister of Finance Agus Martowardoyo. Marwanto admitted that in addition to the budgeting process that varies in each region, an expert in finance and budget planning in the region is still difficult to find. These conditions sometimes cause the slow process of discussion and ratification of the Regional Budget Plan. "It should be ratified in late December, but it’s delayed for a couple of months. As a consequence, the designed program is delayed as well," said Marwanto.
At the seminar Marwanto also mentioned the high level of disparity or inequality between regions. Economic growth between regions varies greatly that there are still quite many areas with relatively high poverty rates. A gap between business stakeholders is also a phenomenon that can often be found, particularly among the large-scale business stakeholder with the stakeholders of micro, small and medium enterprises and cooperatives. "Stakeholders of lower-middle-scale enterprises has limited access to economic opportunities, such as financing from banks," he said.
The gap occurred in 524 provinces and districts throughout Indonesia. Several factors, among others, are associated with area, population, index of raw materials, and human development index. Marwanto assesses that the central and regional government as well as the banking have not been able to play an optimal role with the numerous challenges and constraints. The role of central government and regional government is conducted in the form of public administration management, development facilitation, and community service. Meanwhile, the role of banking is conducted mainly through the financial intermediary function to support a variety of real economic activity of the community.
The government's commitment to improving the welfare of the community so far can also be seen from the rates of the National Budget funds that are absorbed to the region. He cited the state budget funds are around 1200 trillion Rupiah, 400 billion are allocated for the regions, and 400 billion are allocated on subsidies and debt interest, while the rest is allocated for operational cost of the government and development agencies. In addition, the funds that are distributed through the National Poverty Reduction Program (PNPM) Mandiri from to year to year were also increased. "In 2010 the fund was around 10.4 trillion and in 2011 rose to 12.99 trillion," Marwanto explained.