Government Promises Regional Head Retreat to Become Interactive Dialogue Event Between Central and Regional Government

JAKARTA, KOMPAS - The government desires that the retreat or orientation for regional heads does not become a one-way forum from the center to the regions. Although the retreat will only be held for eight days from February 21-28, it is hoped that there will also be dialogue about regional issues in the forum.

This was conveyed by Deputy Minister of Home Affairs Bima Arya Sugiarto after meeting with representatives of the Regional Development Planning Agency (Bappeda) and the Association of Indonesian Municipal Governments (Apeksi) at the Ministry of Home Affairs office, Tuesday (18/2/2025).

The Heads of Bappeda and Apeksi conveyed several aspirations from the regions regarding the national budget efficiency policy. The regional governments requested guidance from the Ministry of Home Affairs to ensure that the implementation of budget efficiency aligns with regional development plans.

"So, the retreat, right, we want it to not be one-way from the center to the regions. Not top-down. But, there is also a two-way dialogue regarding regional issues," said Bima Arya to reporters.

The audience with the local government becomes a kind of problem-shopping event to be brought to the regional heads' retreat at the Military Academy, Magelang, Central Java later. Thus, the central government already has guidelines and materials to be presented during the regional heads' retreat.

"So that later, friends from the ministries can also get a preview. Later, from the regional perspective, what it will be like, so we can entrust the material," said Bima.

Some of the issues that are entrusted to the regions include regional spending regulated by law (mandatory spending). Many regions are still confused about the allocation of the mandatory spending budget so that the Ministry of Finance, which issues technical instructions and the implementation of the policy, can explain during the regional head retreat at Akmil.

"I would like to thank the Chairman of Apeksi who has facilitated this, and gathered friends from Bappeda because they know the technical aspects and regulations. Then, they also know what is still needed, what can be made more efficient. They know all of that," said Bima.

Bima ensured that during the regional heads' retreat, what took place was a dialogue similar to a question-and-answer session in classrooms arranged interactively. The central government would not explain the retreat material in a one-way manner.

Because the implementation of the regional head retreat was compressed for eight days, Bima realized that the leadership orientation of the regional head and deputy regional head would likely not be optimal. However, at least, the retreat program was important for provisioning, synchronization, and building emotional closeness between the regional head and the local government.

"Later (maybe) there will be a continuation, depending on the budget conditions, it could be next year or something, it is very possible. Because the regions also have a budget for developing the capacity of regional heads," said Bima.

One of the questions asked by the head of Bappeda during the audience at the Ministry of Home Affairs was related to the allocation of the APBD for the free nutritious meal program (MBG). The regions are still confused about allocating the budget for MBG because there are no technical instructions and implementation instructions.

However, basically the local government wants to help the national priority program. However, the local government does not yet fully understand what is needed to allocate the APBD for the MBG program. Regions that have sufficient fiscal capacity, for example, are asked to allocate the APBD for the MBG program in schools.

"The President's directive is, why should we provide free nutritious meals (MBG) if the school buildings are not suitable. For example, Surabaya, this is one example. Previously, he allocated IDR 1 trillion for MBG. Now, it can be allocated for school repairs," said Bima.

Bima also emphasized that there is still room for discussion regarding budget adjustments for priority programs of President Prabowo Subianto and Vice President Gibran Rakabuming Raka such as MBG. The budget allocation for the program is not final because at the ministry and agency level, adjustments are still being made with discussions between the Ministry of Finance and the DPR.

Meanwhile, for implementation in the regional government, currently the central government is still drafting its circular. So, if there is input from the regions, the space for dialogue or discussion is still there and open.

"This (audience at the Ministry of Home Affairs) is one of the dialogue spaces. Later, in the retreat there will be another dialogue space. The focus is on dialogue so that later we can understand the concept of efficiency. Not then cutting all budgets, but eliminating budgets that are indeed ineffective and inefficient," said Bima.

In general, according to Bima, the condition of regional fiscal capacity is still largely dependent on transfer funds from the center. Therefore, it is necessary to strengthen regional fiscal capacity to re-combine budget items in the context of budget efficiency policies. The direction of the efficiency policy is actually to improve regional fiscal space.

"This is a process towards improving regional fiscal health. It's actually like that. The President saw the map, there are many weak regional capacities and this cannot be left like that. There must be a kind of shock therapy to make the regions more careful. They cannot depend on the center, then the money will not be saved, effective and efficient," said Bima.

Apeksi Chairman Eri Cahyadi added that a number of crucial issues that regional heads will bring to the retreat at Akmil, Magelang are related to technical budget efficiency. Work efficiency policies such as working from home and working from anywhere by state civil servants (ASN), will actually automatically reduce budget usage. To make the regional budget more efficient, activities that are considered less important must be combed through.

"For example, for activities to handle tengkes, it turns out that there are not many programs to reach victims. This is what is then cut and budgeted. So, it is not directly or immediately cut, but combed again so that it is appropriate and targeted," said Eri.

The elected Mayor of Surabaya for 2024-2029 added that the implementation of APBD efficiency actually also depends on the policies of the regional head. The regional head will prepare the Regional Medium-Term Development Plan (RPJMD) which must be in accordance with the National Medium-Term Development Plan (RPJMN). Regions may not create their own programs that deviate from Prabowo-Gibran's priority programs.

"That's why when there are activities that are not in accordance with this, that's why, right, we actually make it efficient. Not efficiency that cuts, cuts. We never received an order like that," said Eri.

Eri also said that the budget for public services and public interests will still be budgeted according to priority. Activities that are definitely cut due to the impact of budget efficiency are such as focus group discussions (FGD).

However, activities that have an impact on the community's economy, such as MSME exhibitions, can still be carried out by regions if the regional head can explain the urgency and impact.

"It was actually just because of miscommunication (about the efficiency policy), in the end the recipient (regional head), because he was shocked, ended up delivering it in pieces and the message was not complete," said Eri.

Eri also claimed that the efficiency of the regional budget did not cut the budget for the public entirely, such as funds for the eradication of stunting. In Surabaya, the eradication of stunting is indeed a priority program. When it becomes a priority, automatically, funds for other programs such as infrastructure are indeed reduced.

The impact, damaged roads throughout Surabaya, for example, are only patched so that the budget can be diverted to solving tengkes and poverty alleviation. With that policy choice, finally in the city of Surabaya tengkes can be reduced until now the percentage is 1.6 percent or the lowest in all of Indonesia.

"The drastic decline, you know, in Surabaya, because of what? The efficiency that was meant by the President, the Minister of Home Affairs, and the Deputy Minister of Home Affairs. Efficiency is rushed in accordance with the national priority program that must be the same as Astacita," said Eri.

Meanwhile, the Executive Director of the Regional Autonomy Implementation Monitoring Committee (KPPOD) Herman N Suparman is of the view that the efficiency program is supported but has serious implications for regional development programs. Based on the KPPOD study, the reduction in transfers to regions (TKD) reached Rp 50.59 trillion from the regional efficiency program.

This has an impact on the underpayment of revenue sharing funds (DBH) of Rp 13.9 trillion; general allocation funds (DAU) that have been determined for use in the public works sector of Rp 15.6 trillion; physical special allocation funds (DAK) of Rp 18.3 trillion; special autonomy funds of Rp 509 billion; special funds for the Special Region of Yogyakarta (DIY) of Rp 200 billion; village funds of Rp 2 trillion.

"There is a fundamental note from KPPOD where the preparation of Presidential Instruction 1/2025 on Budget Efficiency did not involve the regions at all. Efficiency is directed at central government programs, even though regional governments have their own priority programs," said Herman.

According to him, the effect of the budget cuts will have a major impact on public service spending. Regions seem to have no more room for autonomy, so the presidential instruction is considered not to be in favor of strengthening regional autonomy.

Budget efficiency is also considered contradictory because from the beginning Prabowo-Gibran formed a fat cabinet, and instead made a regional head retreat which was considered to waste the budget for official travel and ceremonies. In fact, the two types of activities are included in the budget efficiency program.