Minister of Environment and Forestry Siti Nurbaya Bakar said the automatic adjustment policy took effect based on a letter from the Minister of Finance on December 9, 2022, with a portion of Rp458.60 billion or around 6.63 percent of the Ministry of LHK's budget allocation ceiling set aside as a reserve.
"We take the composition from personnel expenditures, goods expenditures, and also from capital expenditures," she informed during a working meeting with Commission IV of the House of Representatives (DPR) in Jakarta on Tuesday.
The budget reserve policy requires all ministries and agencies to block a portion of their budget that has not been prioritized for implementation at the beginning of the year.
Through this policy, all ministries and institutions are expected to have the resilience to anticipate if changes must be made in the face of the effects of global uncertainty.
Minister Bakar said that the budget reserve has been processed several times through work meetings and hearings under the guidance of Commission IV of the DPR.
According to her, the Ministry of Environment and Forestry is committed to ensuring that the prepared budget reserve does not interfere with community-based work programs worth Rp1.67 trillion this year.
"As per our report, this automatic adjustment remains in the position of the Ministry of Environment and Forestry to commit to maintaining community-based activities," she said.
In 2023, the Ministry of Environment and Forestry has committed to disbursing Rp1.67 trillion in community-based activity funds, with 327 selected districts and cities tasked with disbursing the funds from March.
Deputy chair of Commission IV of the DPR Anggia Ermarini said legislators have agreed to the policy of setting aside a reserve budget for the Ministry of Environment and Forestry.
"Commission IV of the DPR RI approved the automatic adjustment of the Ministry of Environment and Forestry's 2023 budget of Rp458.60 billion," said Ermarini, who earlier served as chairperson of the working meeting.
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Translator: Sugiharto Purnama, Cindy Frishanti Octavia
Editor: Azis Kurmala
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