Jakarta (ANTARA News) - President Joko Widodo (Jokowi) revealed that he had called on ministries, government agencies, and regional governments to soon realize various programs in 2016 as a delay in budget absorption will cause economic contraction.

"I have urged (ministries/government agencies and regional governments) to start development activities in January and to avoid delay in budget absorption as it could cause economic contraction," President Jokowi noted here on Monday.

He made the remarks while handing over the Development Budget Allocation List (DIPA) and Awards for Successful Regional Incentive Recipients 2016 at the State Palace.

The president urged ministries and government institutions to forego the habit of utilizing the budget at the end of the year.

"(Programs must) start to be implemented from January itself. I will monitor this to identify which regions have development funds lying idle in banks," the president affirmed.

He said that the 2016 DIPA was handed over, so that all parties can accelerate the equitable disbursement of budget funds, which will have multiplier effects on the economy.

The 2016 State Budget reaches Rp2,095.7 trillion, of which 37.4 percent was allocated for ministries and state intuitions expenditure and 36.7 percent was transferred to regions as village funds, while the remaining 25.8 percent was distributed through the state general treasurer.

Budget worth Rp784.1 trillion has been allocated to 87 ministries and state institutions for expenditure.

"Activities and project auctions for 2016 must start soon, so that they will be effective and run smoothly. I call on the ministers and regional heads to stop the old absorption pattern. They should seek breakthroughs. Administrative constraints must be streamlined," he emphasized.

The president has ordered to streamline or to reduce by half some 42 thousand regulations, which have created complexities.

"I also urge the ministers to systematically check their budget posts and to ensure that the budget will be useful," he said.

Ministers and regional government heads should also understand the purpose behind allocating the budget.

"It should not happen that officials draw up unclear programs and make unclear statements," he pointed out.

The president also called on the regions to endorse the 2016 regional budget on time. Budget should be utilized for productive activities.

Regarding regional incentives, Jokowi stated that other regions are also expected to take a cue from the 66 regions, which have been successful in receiving the regional incentive funds.(*)

Editor: Heru Purwanto
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