Opportunities for the Minister of Home Affairs Regulation on General APBD Guidelines to Become a Legal Umbrella for Environmental Incentive Funding

One of the government’s efforts to encourage inclusive and sustainable development is through strengthening funding. Since 2017, PATTIRO together with the Civil Society Coalition for Environmental Funding through the support of The Asia Foundation have had an agenda to encourage strengthening public sector funding through ecologically based budget transfer policies (Ecological Fiscal Transfer/EFT).

This emerged in the remarks delivered by the Executive Director of PATTIRO, Bejo Untung in a discussion initiated by PATTIRO through the support of The Asia Foundation entitled “Policies and Dynamics in Preparing the Minister of Home Affairs General Guidelines for APBD” on Thursday (14/03/2024).

In the context of regulatory synergy and regional financial management funding, regional government innovation in encouraging EFT policies needs to be accommodated in national policies, one of which is in the Minister of Home Affairs Regulation (Permendagri) regarding guidelines for preparing the APBD which is published every year. “Regional governments need a legal umbrella and regulatory certainty at the central level,” added Bejo.

This discussion aims to understand the policies, processes and dynamics in the preparation of the Minister of Home Affairs Regulation on General Guidelines for APBD, including harmonization of policies at the Ministry/Agency and regional government levels. The hope is that, apart from getting the latest information regarding the dynamics of drafting the Minister of Home Affairs Regulation, the civil society coalition will also receive input regarding opportunities and strategies that can be implemented to provide policy proposals in the Minister of Home Affairs Regulation in the 2025 APBD Preparation Guidelines.

Head of Regional Budget Planning for Region II, Directorate General of Public Development, Ministry of Home Affairs, Hilman Rosada, SAP., MAP. as a resource person in this discussion explained one of the scopes in the Minister of Home Affairs Regulation on General Guidelines for APBD which accommodates environmental funding matters which can be intervened in in the attachment section for other special matters.

There are three sections in other special matters. First, the areas of mandatory spending (mandatory spending), namely education, health and infrastructure. Second, the thematic affairs area which is the essence of the law. Third, the area of regional government authority.

Environmental funding is part of the mandate of Law No. 32 of 2009 concerning Environmental Protection and Management. The person in charge of environmental affairs is the Ministry of Environment and Forestry (KLHK). Therefore, to provide recommendations in the Minister of Home Affairs Regulation on General Guidelines for APBD regarding environmental funding, civil society needs to coordinate with the Ministry of Environment and Forestry. There is a special meeting between the Ministry of Home Affairs and related Ministries/Agencies to discuss thematic affairs.

The preparation of the Minister of Home Affairs Regulation on General Guidelines for the APBD consists of 3 stages, namely: inventory stage, discussion stage, and determination stage. Currently the process is in the inventory stage. The inventory stage consists of 3 parts, namely submission of a problem inventory list (DIM) from the Directorate General of Civil Development of the Ministry of Home Affairs, DIM from the regional government, and requests for input from Ministries/Agencies.

Hilman suggested that civil society groups should coordinate with the technical ministry first so that the proposals given can be accommodated in the Minister of Home Affairs Regulation on General Guidelines for the APBD. “This is because the proposal must be a recommendation from the relevant ministry,” said Hilman.

Apart from that, he also suggested that the proposed recommendations could also be included first in the Minister of Home Affairs Regulation on General Guidelines for the RKPD. “If it is included in the Minister of Home Affairs Regulation on General Guidelines for RKPD, then the opportunity to be accepted in the Minister of Home Affairs Regulation on General Guidelines for APBD is greater,” added Hilman.

It is hoped that the Minister of Home Affairs Regulation on General Guidelines for APBD can become a legal umbrella that can strengthen local governments to implement performance-based environmental incentive budgeting.

Also present in this discussion were civil society groups and development partners who were pushing the issue of policy governance and funding for environmental protection in the region, including: GeRAK ACEH, JKMA, FITRA Riau, JARI Borneo West Kalimantan, PINUS South Sulawesi, and PUPUK Surabaya.

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