"I expect that this index can evaluate regional finance management performance and its relation and effect on the macro economy, which became the measurement to evaluate regional finance management performance throughout this time," Head of the BSKDN Yusharato Huntoyungo said here on Wednesday.
The topic was also discussed at the IPKD dissemination meeting with the Directorate General of Regional Finance Development at the ministry's BSKDN Office on Wednesday, he added.
Huntoyungo highlighted the several dimensions and indicators of the IPKD, which include planning and budgeting documents’ suitability, regional finance transparency, spending budget allocation within the regional budget, and regional finance transparency.
They also comprise budget absorption, regional finance condition, and the Audit Board of Indonesia's (BPK's) opinion of the Regional Government Financial Report (LKPD).
These dimensions' effect on two measurements of the macroeconomy, namely growth and inflation, has been observed, he said.
Next, Huntoyungo urged management teams to re-examine the contribution of each IPKD's dimensions within the growth of the macroeconomy. This effort is expected to help ensure quality regional finance management.
The government is still testing whether the results of the measurement truly reflect current data and conditions, he informed.
This is being done by observing macroeconomy measurements or other aspects that can be improved or measured using IPKD, he added.
During the discussion, he said he expects the result of IPKD measurement to drive and motivate regional governments to improve the performance of regional finance management.
The ministry will bestow awards to regional governments with the best IPKD score.
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Translator: Boyke Ledy W, Fadhli Ruhman
Editor: Rahmad Nasution
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