Jakarta (ANTARA) - The Indonesian central government has awarded Rp750 billion (around US$48 million) in fiscal incentives to 26 regional governments for their strong performance in reducing extreme poverty.

Vice President Ma'ruf Amin symbolically handed over the fiscal incentives at a national coordination meeting and the handover ceremony of fiscal incentives for extreme poverty reduction performance in 2023 in Jakarta on Thursday.

"We hope that these incentives will be used effectively to achieve the goal of eliminating extreme poverty," he said.

Amin cited data from Statistics Indonesia (BPS) showing that the extreme poverty rate declined significantly by 1.12 percent in March 2023.

He said that Indonesia must sustain this positive momentum in order to achieve its extreme poverty reduction goals.

According to Presidential Instruction No. 4 of 2022, the government has set a goal of completely eliminating extreme poverty in Indonesia by 2024.

As per the 2020–2024 National Mid-Term Development Plan (RPJMN), the government is targeting to bring the poverty rate to 6.5-7.5 percent. However, in March 2023, the poverty rate in Indonesia still stood at 9.36 percent, according to BPS.

"Hence, ministries, agencies, and regional governments need to implement special policies and programs," Amin noted.

The distribution of fiscal incentives to regional governments that have been successful in suppressing the rate of extreme poverty is in line with the Finance Minister's Decree No. 350 of 2023.

The incentives have been provided to seven provincial governments and 19 district and municipal governments.

The seven provinces are Aceh, Jakarta, West Java, East Java, West Kalimantan, and Banten.

The districts of South Labuhan Batu, East Tanjung Jabung, North Musi Rawas, Pesawaran, East Belitung, Bintan, Buleleng, West Sumba, Central Hulu Sungai, Tana Tidung, Tojo Una-Una, Musi Banyuasin, South Bolaang Mongondow, and East Kotawaringin have also received the incentives.

The cities that have been awarded the incentives include Gorontalo, Payakumbuh, Yogyakarta, Ambon, and Mataram.

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Translator: Imamatul S, Tegar Nurfitra
Editor: Anton Santoso
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