Strengthening the East Kalimantan Downstream Industry

Tanah Paser, Thursday 4/2/2016. Implementation of the Bappeda Coordination Meeting throughout East Kalimantan in 2016 is an important and strategic agenda in the context of to identify strategic problems and issues and synergize priority programs between the East Kalimantan Provincial Government and the Regency/City Governments throughout East Kalimantan as well as the Central Government in preparing the 2017 East Kalimantan Regional Government Work Plan (RKPD), which is the 4th year of the 2013-2018 East Kalimantan RPJMD which will greatly determine the success of the East Kalimantan RPJMD targets.

This was conveyed by Plt. Regional Secretary of East Kalimantan Province, DR.Ir.H. Rusmadi, MS representing the Governor of East Kalimantan, DR.H. Awang Faroek Ishak, who was unable to attend, delivered his speech and opened the 2016 East Kalimantan Bappeda Coordination Meeting with the theme "Consolidating Downstream Industry to Create a Quality Economic Structure" attended by approximately 250 participants from SKPDs within the East Kalimantan Provincial Government and Regency/City SKPDs throughout East Kalimantan in the meeting room of the Sandurengas Hotel, Tanah Paser, Wednesday 3/2/2016.

H. Rusmadi added that holding this coordination meeting was intended to equalize perceptions in overcoming the identification of challenges and corrective steps according to the program and strengthen synergies between provinces, districts/cities and between sectors in order to improve program implementation as well as to obtain input regarding efforts to improve the program.

Meanwhile, the aim of this Bappeda coordination meeting throughout East Kalimantan is to synergize the priority programs and activities of the Central, Provincial and Regency/City Governments throughout East Kalimantan in overcoming problems and efforts to achieve development targets in the 2013-2018 RPJMD and the target to be achieved is the realization of an agreement between the Provincial Government and the Regency/City Government in the context of implementing the priority development program for East Kalimantan Province in 2017.

Informant Presentation

The speaker's presentation was eagerly awaited by the participants who attended the second session after the opening which was delivered by 2 speakers including the Director General of Financial Balance, Ministry of Finance of the Republic of Indonesia, Rukijo, SE., MM with the presentation title "2017 Balancing Fund Policy Plan for East Kalimantan Province" and the second resource person was a political economy observer, DR. Ichsanuddin Noorsy, B.Sc., SH., M.Si with the presentation title "Consolidating Downstream Industry to Create a Quality Economic Structure" which was packaged in the Talk Show agenda guided by an experienced moderator from TVRI Kaltim, Ardhana Riswari.

Rukijo, SE., MM Director General of Financial Balance, Ministry of Finance of the Republic of Indonesia in his presentation said that increasing the Transfer Budget to Regions and Village Funds was based on policies including:
1. The need to strengthen Indonesia's characteristics as a Fiscal Decentralization country.
2. The authority for the Implementation of Government Affairs has been transferred from the Center to the Regions (in accordance with Law Number 23 of 2014 concerning Regional Government.
3. There is a need to increase the budget allocation for Transfers to Regions and Village Funds to support the implementation of Nawacita, namely the ideals: third: developing Indonesia from the periphery by strengthening regions and villages within the framework of the Republic of Indonesia; fifth: improving the quality of life of Indonesian people; sixth: increasing people's productivity and competitiveness in the international market and seventh: economic independence by driving the domestic sector.
4. The existence of the Village Law has given authority and financial resources to villages, including Village Funds from the APBN.

Improvement of transfer policies to regions (General Transfer Funds)

General Allocation Funds (DAU) are funds sourced from APBN revenues allocated with the aim of equalizing financial capacity between regions to fund regional needs in the context of implementing decentralization in accordance with Law Number 33 of 2004 article 1 paragraph 21. As an equalization grant, DAU is a transfer instrument intended to minimize fiscal inequality between regions, while at the same time equalizing inter-regional capacity in accordance with Law Number 33 of 2004 article 1 paragraph 21. Meanwhile, DAU allocation is based on a formula with the concept of basic allocation and fiscal gap, namely the difference between fiscal needs and fiscal capacity in accordance with Law Number 33 of 2004 article 27 paragraph 2.

The 2016 DAU (general allocation fund) policy is:
1. Applying the DAU formula consistently through weighting: Basic Allocation; Components of Fiscal Needs; Components of Fiscal Capacity.
2. Increasing the distribution of financial capabilities between regions (as an equalization grant) as indicated by the most optimal Williamson Index, through limiting the basic allocation portion and evaluating the weight of the fiscal needs and fiscal capacity variables, with the aim of reducing fiscal inequality between regions.
3. The amount of the National DAU ceiling is set at 27.7% of the Net PDN stipulated in the APBN.

Meanwhile, the explanation from economic and political expert, DR. Ichsanunddin Noorsy, B.Sc., SH., M.Si focuses more on providing input, especially in the development planning sector which can improve the regional economy in order to improve people's welfare.

Ichsanunddin Noorsy added that State administrators in carrying out government, both the Central, Provincial and Regency/City Governments, must be honest in making development plans without any intervention from any party.

Public Relations of Bappeda East Kalimantan Province/Sukandar, S.Sos