THE DEVELOPMENT OF GOVERNMENT ADMINISTRATION SECTOR IN 2021

Government Administration is the management process of government activities in implementing their political power, which includes the activities of various departments, both legislatively and judicially.

Government administration, defense and social security

Based on data from Badan Pusat Statistika (BPS), the government administration, defence and social security sub-sectors declined significantly in 2020 by minus 4.68 points or contracted by 0.03% from the previous year.

The decline was caused by the COVID-19 pandemic, which lessened the performance of government employees as impacts of health regulations that limited their activities, and the lessening realization of government expenditure, particularly for the group of goods and capital expenditures.

THE DEVELOPMENT IN 2021

In Q1/2021, the government administration sub-sector decreased by 3.05% (Y-o-Y). The decrease was due to the no-yet-realized Performance Allowance (turkin) for the State Civil Apparatus (ASN), thus affecting the added value in the government administration sub-sector and reducing the realization of government spending, especially in the goods and capital expenditure group.

Government administration defense and social security mandatory

Entering Q2/2021, the government administration sub-sector recovered and increased to 9.49% (Y-o-Y), in line with the progress of COVID-19 vaccination and the recovering work activities of Indonesian people.

Regarding the current development of state expenditure realization, according to the Ministry of Finance (Kemenkeu), the realization of state expenditure until the end of August 2021 only grew by 1.5% year on year (yoy), lower than the realization of state expenditure in the same period of previous year that increased by 10.8% yoy. Nominally, the realization of state expenditure for the period of January-August 2021 totalled IDR 1,560.8 trillion or only 56.8% of the total ceiling limit of IDR 2,750 trillion. This means that for the next four months (September-December 2021), there is still a remaining state expenditure of IDR 1,189.2 trillion. This also shows that at least there was an increase in the government administration sector in Q3/2021, though not as significant as in last year.

In detail, realization of the government expenditure reached IDR 1,087.9 trillion, or increasing by 10.9% yoy. It consisted of the Government Ministry/Institution (K/L) expenditure of IDR 628.6 trillion and non-K/L expenditure of IDR 459.3 trillion. Meanwhile, the realization of transfers to regions and village funds (TKDD) was contracted by 15.2% (YoY) to IDR 472.9 trillion, consisting of IDR 429.2 trillion for transfers to the regions and IDR 34.7 trillion for the village funds. As also stated by the Minister of Finance (Menkeu) of Indonesia Mrs. Sri Mulyani Indrawati, the low realization of regional spending is because part of the regional income came from the Transfers to Regions and the Village Funds (TKDD). (source: www.kontan.co.id)