Indonesian President Orders Evaluation of Regional Budget Transfers

Comprehensive Review of Regional Budget Absorption

Indonesian President Prabowo Subianto has directed State Secretary Prasetyo Hadi to conduct a thorough evaluation of budget transfers to regional governments as the year draws to a close. The review will particularly examine the absorption and utilization of allocated funds by regional authorities. This directive was issued during a special meeting with key cabinet members at Halim Perdanakusuma Air Base in Jakarta before the President's official visit to Australia.

Key Focus Areas of the Evaluation

The evaluation will primarily focus on two critical aspects:

1. Budget Absorption: Assessing how effectively regional governments have utilized the transferred funds
2. Fund Utilization: Examining whether the allocated resources have been used for their intended purposes

Significance of the Presidential Directive

This presidential instruction represents a significant step towards enhancing fiscal management at the regional level. By scrutinizing the allocation and use of funds, the central government aims to ensure that resources are being used efficiently and effectively to support regional development initiatives. The outcome of this evaluation is expected to provide valuable insights into the current state of regional budget management and potentially inform future fiscal policies.