Safeguarding Fiscal Independence: House of Representatives Commission II Evaluates Regional Head Remuneration and Revenue Sharing Funds. House of Representatives Commission II held a crucial Working Meeting highlighting regional financial governance, from official welfare to budget independence. One of the main issues raised was the restructuring of Regional Head (KDH) and Deputy Regional Head (WKDH) remuneration. This adjustment to take-home pay was deemed urgent to ensure it is more proportional to the actual workload on the ground, while also being a strategic step in reducing opportunities for corruption at the regional level.
In parallel with the welfare issue, the meeting also reviewed the Revenue Sharing Fund (DBH) system to address fiscal disparities between regions. This restructuring of the central-regional transfer scheme is a breath of fresh air for regions that have been experiencing severe budget pressures. The House of Representatives, along with relevant ministries, is committed to formulating a more equitable DBH formula so that each region has sufficient capital to drive local development.
An equally important concrete step is the strategy to increase Regional Original Revenue (PAD) through relaxation of tax and levy regulations. Regional financial independence is intended to be strengthened so that regional governments are not solely dependent on the central budget. On the other hand, this forum also underscored the urgency of central government budget intervention for dozens of districts/cities burdened with financing the salaries of Government Employees with Work Agreements (PPPK) to prevent the risk of mass layoffs.