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Strengthen fiscal capacity through BLUD, minister tells regions

Diposting pada 28 Juni 2024 oleh admin / Dilihat: 0 kali

Jakarta (ANTARA) –

Minister of Home Affairs Tito Karnavian urged regional governments to increase fiscal capacity through the Regional Public Service Agency (BLUD) in the health sector.

He made the statement at the launch of the “Joint Circular on Procurement of Goods/Services for BLUD Health Sector” in Jakarta, Thursday.

“We are encouraging work units that can become BLUDs so that they can get new sources of income for the regions, not just depend on the central government,” he added.

He said that Indonesia’s population growth and demographic bonus could provide large capital for making leaps in the future.

Several survey institutions estimate that Indonesia will become the fourth dominant player in the world economy in 2045–2050.

However, this must be accompanied by strengthening the health and education sectors better.

“The key is to build human resources. Therefore, all education and health infrastructure must be improved, reforms must be truly carried out,” he stressed.

He also noted that there are three main sources of regional government revenue, namely transfers from the central government, Regional Original Income (PAD), and other sources including Regionally-Owned Enterprises (BUMD) and BLUD.

If BUMD and BLUD are managed well and professionally, local governments can earn profits that can be used to strengthen the Regional Revenue and Expenditure Budget (APBD).

The Ministry of Home Affairs highlights that in managing the APBD, income must be greater than expenditure.

If the income is large, the regional government can use the excess to fund various programs.

In addition, local governments can utilize Indonesia’s rich natural resource reserves to support BLUDs in their respective regions.

“We can realize BLUD in the health sector and the guidance we provide together with the Government Goods/Services Procurement Policy Institute (LKPP) will improve the health system and regional income,” said Karnavian.

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Translator: Narda Margaretha, Raka Adji
Editor: Azis Kurmala
Copyright © ANTARA 2024

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Strengthen fiscal capacity through BLUD, minister tells regions

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