Central Government Spending Realization in the Capital City

Economics & Macro

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Adi Ahdiat 22/08/2023 19:40 WIB

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State expenditure realization (K/L and TKD spending) in Jakarta far surpasses that of other provinces.

Realization of State Expenditure in 34 Indonesian Provinces (2022)

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Central Government Spending Realization in the Capital City

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Realization of State Expenditure in 34 Indonesian Provinces (2022)

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Indonesia's central government spending is concentrated in DKI Jakarta. This is evident in *Book II of the State Budget Draft and Financial Note (RAPBN) for Fiscal Year 2024*.

Throughout 2022, ministry/agency (K/L) spending and transfers to regions (TKD) in DKI Jakarta totaled Rp697.4 trillion. This figure far surpasses K/L and TKD spending in other provinces, as shown in the graph.

However, the government states that spending recorded in DKI Jakarta benefits other regions.

"The largest portion of spending is in Java because disbursements are centralized in DKI Jakarta, although beneficiaries may be outside Java," as quoted from *Book II of the State Budget Draft and Financial Note (RAPBN) for Fiscal Year 2024*.

"The high proportion of K/L spending realization in Java is due to several factors, including the operational activities of 84 ministries/agencies recorded in Java, particularly in DKI Jakarta, the nation's capital," it continues.

The government also states that provinces on Java Island tend to have higher K/L and TKD spending due to their larger populations compared to other regions, and the presence of numerous industrial areas requiring infrastructure development.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Central Government Spending Realization in the Capital City

Central Government Spending Realization in the Capital City

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