ETPD supports improvement of regional financial management: minister

ETPD supports improvement of regional financial management: minister

Coordinating Minister for Economic Affairs Airlangga Hartarto. (ANTARA/HO-Coordinating Ministry for Economic Affairs/rst)

Jakarta (ANTARA) - Coordinating Economic Affairs Minister Airlangga Hartarto stated that the application of Regional Government Transaction Electronification (ETPD) for regional income and expenditure transactions supports the improvement of financial management in the regional government.

"The implementation of ETPD is expected to improve the local government's financial management to become more efficient, transparent, and accountable. It also aids to increase regional revenue," Hartarto conveyed in an official statement received here, Saturday.

Presidential Regulation Number 95 of 2018 mandates the implementation of the Electronic-Based Government System (SPBE) for the Central and Regional Governments to provide excellent public services.

Accelerating the realization of SPBE is expected to be supported by the existence of the Acceleration and Expansion of Regional Digitization (P2DD).

ETPD is a digital transformation effort made by P2DD to support the SPBE. In addition, P2DD has conducted several transformations in the local government's financial management and improved public services and governance.

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This is done through establishing provisions or regulations, conducting institutional formation, improving implementation and infrastructure, and strengthening data and information.

As an effort to respond to the surge in the digital economy to strengthen the national and regional economy, President Joko Widodo has issued Presidential Decree Number 3 of 2021 on the Task Force for P2DD.

The P2DD Task Force comprises leaders from eight ministries and institutions to coordinate with the 542 teams of P2DD led by each regional head.

The increasing number of the P2DD team is also in line with the increase in regional income transactions. An increase was also clocked in the types of taxes that were electronified, from 81.6 percent in the first quarter of 2021 to 86.2 percent in the second quarter of 2021.

Moreover, an increase was recorded in the types of regional levies that are electronified, from 53.9 percent in the first quarter of 2021 to 62.2 percent in the second quarter of 2021.

Based on the results of the ETPD Index assessment in July 2021, there were 115 local governments (21 percent) in the digital category, 270 local governments (50 percent) in the advanced category, 151 local governments (28 percent) in the developing category, and six local governments (one percent) in the initiating category. 

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