Make Jakarta a Global City Needs Rp91. 14 trillion

The provincial government (Pemprov) of DKI JAKARTA proposed a draft Regional Income and expenditure budget (RAPBD) for fiscal year (FY) 2025 amounting to Rp91.14 trillion.

This figure is up 6.97 percent when compared to changes in the FY 2024 budget of Rp 85.20 trillion.

Reporting from the press release of the DKI Jakarta Provincial Government, Regional revenue in the FY 2025 APBD is planned at Rp81.68 trillion,an increase of 8.99 percent compared to changes in the FY 2024 APBD of Rp74. 94 trillion.

Regional revenue is expected to come from local revenue of Rp54.08 trillion,Transfer revenue of Rp26. 13 trillion, and other legitimate regional revenue of Rp1. 46 trillion.

While the regional revenue plan is expected from local taxes of Rp47.9 trillion, regional levies of Rp972. 58 billion,the results of regional Wealth Management separated by Rp774 billion, and other legitimate local revenue of Rp4. 43 trillion.

Meanwhile, Transfer revenue is expected to be Rp26.13 trillion from central government transfers. Furthermore,for other legitimate regional revenues are expected to be Rp1.46 trillion from Central Government grant revenues.

Regional expenditure in the regional budget for fiscal year 2025 is planned at Rp 82.32 trillion.

The regional spending plan consists of operating spending, capital spending, unexpected spending, and Transfer spending.

Regional expenditure used to fulfill compulsory affairs,among others, for education affairs of Rp 20.55 trillion or 24.96 percent and for infrastructure spending of Rp36.30 trillion or 44.30 percent.

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The allocation of spending for priority areas of education and infrastructure spending as mandatory spending has exceeded the minimum limit of 20 percent for education and 40 percent for infrastructure from total regional spending in the 2025 draft budget.

Regional spending used for development priority budget is:

  1. Improving the quality of the environment and infrastructure of the city amounted to Rp 20 trillion or 24.30 percent of the total regional expenditure.
  2. Accelerated economic growth of Rp 949.21 billion or 1.15 percent of total regional expenditure.
  3. The increase in public welfare amounted to Rp 15.48 trillion or 18.80 percent of the total regional expenditure.
  4. Adaptive governance amounted to Rp 2.49 trillion or 3.04 percent of total regional expenditure.

In a plenary meeting with DPRD DKI Jakarta on Thursday, November 7, 2024, DKI Jakarta Regional Secretary (Sekda) Joko Agus Setyono said the FY 2025 APBD is aimed at encouraging Jakarta’s role as a global business city.

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This is done by improving fundamental problems through improvement priorities on issues of disaster resilience, housing, mobility, emissions and pollution, waste management, and access to clean water and wastewater.

“In addition, we also want to improve the quality of basic education services, health, career and job opportunities, business opportunities, as well as the provision of public spaces in accordance with legislation, creating an inclusive and developing ecosystem in order to improve industrial competitiveness, innovation, inclusiveness and equality, cultural and historical identity, transparency and accountability, and smart governance,” added Secretary Joko.

Then also provide assistance in the form of Public Service subsidies, grants according to applicable regulations, social assistance for certain communities, and financial assistance for other local governments.

Then allocate the budget to fulfill mandatory affairs related to basic services based on the minimum service standards (SPM), fulfillment of employee spending, and fulfillment of multi-year activities.

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Joko emphasized that the spending policy in the FY 2025 APBD is directed to the fulfillment of priority spending within the framework of the continuity of the implementation of the money follow priority program.

“In regional financing, the source of financing receipts in 2025 comes from the remainder of the budget calculation (SiLPA) in 2024 and regional loan receipts. In fact, the financing expenditure will be allocated for regional capital participation (PMD) and payment of principal installments due,” concluded Joko.