SUKABUMIUPDATE.com – Bank Indonesia (BI) predicts that the realization of expenditure and Regional Original Revenue (PAD) of West Java Province will increase significantly in the second semester of 2025.
As of July 2025, the realization of Budget Expenditure (APBD) of West Java Province reached 38.79 percent. This figure is above the national average, which only reached 31.8 percent.
Meanwhile, the realization of West Java’s PAD has reached 44.72 percent of the fiscal target of APBD 2025, also surpassing the national average at 43.62 percent.
Deputy Chief Representative of Bank Indonesia West Java, Muslimin Anwar, expressed optimism that the rising spending trend will continue in the second semester, along with the easing of budget policies at both central and regional levels.
“The budget tightening has started to loosen, both at the central and regional levels,” he said at Gedung Sate, Monday (July 14, 2025).
According to him, the large-value infrastructure spending was not yet optimal in the first semester and will be maximized in the second semester. This includes several projects within the National Strategic Program (PSN) that have started in West Java.
“Infrastructure project spending, especially PSN, will be further optimized in the second semester. There are quite a few of these programs in West Java,” he added.
On the PAD side, Muslimin emphasized the need to optimize the non-motor-vehicle tax sector. He assessed that the incentive policy of waiving Motor Vehicle Tax (PKB) positively impacted the increase in PAD, including revenue from billboard taxes.
He also reminded the importance of attention to community welfare, especially micro, small, and medium enterprises (MSMEs). Regional governments are expected to encourage promotion of MSME products through exhibitions and business meetings to break into export markets.
“West Java’s craft exports are still good; if higher taxes are imposed, especially from the US, markets might shift to Europe or countries in Asia and the Middle East. But of course, product quality must be improved,” he said.
Muslimin added that now is the right moment for MSMEs to maximize domestic market potential.
Meanwhile, West Java Provincial Secretary Herman Suryatman revealed that the fiscal capacity of West Java’s APBD in 2025 reaches over Rp31 trillion, making it among the highest among 38 provinces in Indonesia.
In a meeting with Minister of Home Affairs Tito Karnavian, Herman stated that West Java’s regional expenditure ranks third nationally, after Yogyakarta and West Nusa Tenggara.
Besides encouraging acceleration of expenditure realization, Herman stressed that the quality of regional spending is also a primary focus.
“The Governor always reminds that APBD spending must directly benefit the community. God willing, we will continue to maintain and oversee West Java’s APBD for the welfare of the people,” he affirmed.