South Sumatra has reduced its poverty rate from 12.8% down to 12.7% by practicing prudent financial management.

Jakarta, GATRAreview.com - South Sumatra's regional chief, Governor Herman Deru, said he was not satisfied with his government's budget uptake despite appearing to be excellent. “Honestly, I was not satisfied with this year's budget result,” Mr. Deru said to GATRA Review. He said that he would be satisfied when people start to see the real benefits. “I will be proud of the region's budget uptake only if [the benefits] reach the greatest point,” he said.

One of the goals being pursued by the South Sumatra regional government is to reduce the poverty rate to only one digit, done via budget management. Thus, during Gov. Deru's first year in office, the efforts around the Regional Budget and Expenditure (APBD) became the hallmark to reach the goal.

The policies on the 2019 APBD, including the Rp10.5tn income budget, were done by intensifying and extending the funding sources, and with efficient expenditures. As for this year, the highest indirect budget expenditure was in the profit-sharing between the district governments, which reached Rp2.56tn.

The poverty rate reduction was paced up by direct spending on infrastructure, education, and healthcare. In 2019, South Sumatra's spending in infrastructure reached Rp1.55tn, the highest in the last four years. In March 2019, South Sumatra had seen a falling poverty rate from 12.80% to 12.71%.

Gov. Deru admitted that with more roads being constructed, connectivity between areas would improve. The South Sumatra regional government has allocated Rp1.26tn for road construction projects. “Poverty is influenced by resources and demands. Thus, better infrastructure will help the residents to get their needs and carry out their business,” he said.

Besides building the infrastructure, the regional government has also constructed the village internet facilities. In every village, internet connections will be provided in village halls and public areas. “The government will reduce [offline] blank spots in 170 villages in South Sumatra,” said the head of communication and information technology board, Ahmad Rizwan, to GATRA Review.

Asep Somanhudi, a local coffee entrepreneur in Palembang, hoped that the government would provide more roads and broader internet coverage, which he believed would boost local businesses. “I see that Gov. Deru is eager to do it, but it should be supported with unified programs concerned with things like coffee commodities in South Sumatra,” he said.

Nur Hidayat and Tasmalinda (Palembang)

Translator: Gabriel Mahendra