inp.polri.go.id - Jakarta. Minister of Home Affairs Muhammad Tito Karnavian emphasized that economic growth is the main indicator in assessing whether a region is progressing or regressing.
"If economic growth is growing, it means that the country will definitely grow," said Tito while leading the Coordination Meeting for the Acceleration of the Realization of the 2025 Regional Revenue and Expenditure Budget (APBD) on Thursday (5/8/2025).
He explained that positive but still low economic growth indicates slow progress, while negative growth reflects serious challenges in development.
He said that there were provinces that recorded the highest income nationally, but experienced negative economic growth due to low absorption of regional spending.
"This means that the fund stays in the bank, not circulating in the community, causing the negative economic growth," he said.
According to him, the low absorption of regional spending is often caused by weak coordination between regional apparatus organizations (OPD).
To that end, regional heads are asked to immediately consolidate all OPDs to prepare a scenario for accelerating spending, especially if the realization of regional income is already high.
He also emphasized the importance of internal evaluation to accelerate revenue increases, both from Regional Original Income (PAD), transfers from the central government, and other sources such as Regionally-Owned Enterprises (BUMD) and Regional Public Service Agencies (BLUD).
Lastly, Tito reiterated the importance of accelerating spending targeting low-income groups (MBR). Social assistance programs, both in cash and non-cash, must be distributed immediately so that people's purchasing power increases.
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