Of the seven districts/cities in Kepri Province, he said, only Batam’s locally generated income (PAD) for 2023 has exceeded the budget provided by the central government. This year, Batam City's PAD reached Rp1.6 trillion, higher than the central government's budget allocation for the city of Rp1.5 trillion.
"I only ask for one thing considering the fact that only Batam has PAD higher than the budget provided by the central government in Kepri. With that in mind, I would like to ask the other regions to promote investment appeals. It is necessary to draw investment both from foreign and domestic investors," Karnavian added in Batam, Kepri, on Friday.
"And not to mention the potential of micro, small, and medium enterprises (MSMEs)," he continued.
In Kepri Province, the central government indeed set its initial focus on Batam and encouraged it to boost its PAD by establishing the Batam Concession Agency (BP) as the city's investment organizer, he noted.
The minister then emphasized the need for efforts from the province's other regions to boost their PADs so that they do not constantly rely on the central government.
"This being said by referring to the other regions being highly dependent on the budget transfer from the central government. Moreover, most of the fund is used for employees' personal needs. Such a trend will not lead to progress," he said.
In order to make progress, the private sector's potential must be taken seriously into account in efforts to increase PAD, he added.
For that reason, Minister Karnavian said he hoped that other regions in Kepri would develop their investment appeal by making it easier for investors to obtain permits.
"All parties should exert their best efforts to provide confidence, certainty, security, and ease in obtaining permits for private investors," he added.
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Translator: Ilham Yude, Tegar Nurfitra
Editor: Rahmad Nasution
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