Promising Bonuses to Spur Investment in Regions

By Editorial Team 17/09/2019
Summary

The central government promises bonuses for local governments who can manage their territory well, particularly regions that encourage investment and exports. These bonuses will be given through regional incentive funds (DID), funds allocated from the central government as an incentive to the regions to improve performance in terms of local fiscal management, public service governance, and essential public services, as well as improving the welfare of its citizens. In the 2020 State Budget Bill (RAPBN), the DID budget allocation reached Rp 15 trillion. Next year the DID criteria will be added by two points, namely investment ease and export performance.

The Ministry of Finance noted 425 regions had fulfilled the main criteria for DID beneficiaries for next year, Kontan reported on Friday (9/13). Each region obtains DID ranging from Rp 7.72 billion to a maximum of Rp 103.94 billion, with an average of Rp 35.83 billion per region. Finance Minister Sri Mulyani Indrawati said many central government policies were highly dependent on the regions since they have limited resources and the capabilities to focus.

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