Increase in DAU Boosts Regional Economy Faster News – 10 hours ago

Jakarta, 23 October 2023 – Minister of Finance Sri Mulyani Indrawati increases transfer allocations to regions in 2024, including general allocation funds (DAU). Transfers to regions in 2024 will reach IDR 857.59 trillion, while in 2023 it will amount to IDR 814.72 trillion.

The largest component of transfers to regions is DAU reaching IDR 427.69 trillion in 2024, an increase of around 8% from the amount of disbursement in 2023 which amounted to IDR 396 trillion. The amount of funds is given by the central government from the APBN to the regions in two parts.

The first portion of DAU is distributed in the form of funds whose use is not determined or a block grant, meaning that its use is handed over according to regional authority, but refers to regional development priorities. The amount in 2024 will be IDR 343.53 trillion.

Second part, DAU is handed over in a form determined for its use or specific grant for support in the fields of Education, Health, Public Works and Public Services. The value will be IDR 84.17 trillion in 2024.

The distribution of DAU in these two forms is being implemented for the first time after the issuance of Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments or the HKPD Law.

“So there is DAU whose use is not determined, and second is DAU whose use is determined, or what we usually call DAU earmark or DAU specific grant,” said Director of General Transfer Funds DJPK Ministry of Finance Adriyanto.

Because there are parts of the DAU whose use is determined, or adjusted to programs or activities determined by the government. There are a number of details of the areas determined for the program to be implemented using DAU.

For the education sector, it is used for physical and/or non-physical activities in order to improve the quality of basic services in the education sector. Meanwhile, the health sector is for physical and/or non-physical activities in order to improve the quality of basic health services.

The public works sector is used for physical and/or non-physical activities in order to improve the quality of basic services in the public works sector. Meanwhile, the public services sector consists of two designations.

The first is sub-district funding support which is used to provide funding support to district or city level regions in fulfilling budgeting for sub-districts according to technical instructions from the Ministry of Home Affairs.

Second, is support for the salaries of state civil servants (ASN) in the regions, namely the formation of government employees with work agreements (PPPK) in the form of payment of basic salaries and allowances attached to the PPPK formation, which in TA. 2023 is used to pay salaries and allowances attached to the 2022 and 2023 PPPK formations which were appointed in 2023.

“In 2024, the DAU allocation for all regions will increase due to the additional burden on PPPK payroll requirements for 2022 and 2023 which will be lifted in 2023 and 2024, as well as the additional burden on employee expenditure requirements to meet the 8% salary increase,” said Adriyanto.

Specifically for DAU which is earmarked for PPPK payroll, until 2024 funds are prepared amounting to IDR 41.4 trillion. Divided into salaries for 2022 PPPK formations appointed in 2023, 2023 formations appointed in 2023, and the remaining 2023 formations appointed in 2024.

“For the number of PPPKs that will be appointed, the data comes from the Ministry of PANRB and/or BKN in accordance with statutory provisions. This is an illustration of the size of the earmark DAU,” said Adriyanto.

The details of the disbursement of funds are divided into PPPK formations for 2022 which will be appointed in 2023 worth IDR 8.3 trillion. Consisting of PPPK Teachers 320,223 people, PPPK Health Workers 92,151 people, and PPPK Technical Personnel 27,594 people.

Then, for the 2023 formation, IDR 17.4 trillion was appointed this year, consisting of 709,219 PPPK Teachers, 185,448 PPPK Health Workers, and 13,193 PPPK Technical Personnel.

Finally, a budget of IDR 15.7 trillion was allocated for the 2023 formation which was appointed in 2024 with details of PPPK Teachers 296,059 people, PPPK Health Workers 154,342 people, and PPPK Technical Personnel 42,826 people.

“So, once again for the PPPK formation, the government, through consistent DAU allocation, also continues to budget for the PPPK formation,” stressed Adriyanto.

[Gambas:Video CNBC]

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