Biak – The Biak Numfor Regency Government (Pemkab), Papua, said that the realization of regional revenue for the period as of 30 April 2024 reached Rp326.1 billion. The largest budget absorption was for regional expenditure, which reached Rp196.2 billion. Head of the Biak Numfor Regional Asset Financial Management Agency (BPKAD) Gunadi MSi said that the largest regional expenditure was operating expenditure for employees, goods and services, interest expenditure, grant expenditure, and social assistance expenditure. As for capital expenditure until April 2024, according to the amount of Rp5.07 billion. Gunadi admitted that BPKAD continues to encourage budget user powers in each organization and regional apparatus agency to increase budget absorption in 2024. BPKAD as a regional apparatus organization will encourage each budget user to power on time to process fresh funds for daily needs. Regarding Biak Numfor Regency’s Regional Original Revenue (PAD) in 2024, the targeted amount of revenue is Rp 44 billion. Gunadi said, that for the realization of Biak Numfor PAD revenue until April 30, 2024, amounting to Rp9 billion consisting of taxes of Rp5.6 billion, regional levies of Rp722 million, the results of the management of separated regional property wealth of Rp2.2 billion, and other legal PAD is Rp370 million. Based on the overall data, regional revenue in the 2024 APBD amounted to Rp1.4 Trillion.
Biak Numfor Regency’s regional income in 2024 faces a big challenge because it is still very dependent on financial transfers from the central government. Of the total 2024 Regional Budget (APBD) set at Rp1.48 trillion, the contribution of Regional Original Revenue (PAD) is only around 3.1% or around Rp44 billion.
Most of Biak Numfor’s regional income comes from balancing funds and central transfers. This shows the limited ability of the region to generate its revenue, which is a challenge for sustainable and independent development. For 2024, the regional expenditure allocation has been planned at Rp1.45 trillion, which will be used for various programs and activities that are expected to run more effectively and on time.
In addition, the Biak Numfor Regency Government has also emphasized the importance of transparent and accountable budget management to avoid legal problems that may arise from financial mismanagement. This is the main focus to ensure that each regional apparatus organization (OPD) uses funds properly by applicable regulations.
With this situation, increasing PAD through optimizing local potentials, such as tourism and MSMEs, is important to reduce dependence on central funds and increase regional fiscal independence.
It is known that Biak Regional revenue is obtained from:
- Regional Original Revenue (PAD): The contribution of Biak Numfor PAD in 2024 reached 3.1 percent or Rp44 billion, which means that most of the regional income comes from other sources such as financial transfer funds from the central government.
- Financial Transfer Funds: The Biak Numfor district government depends on financial transfer funds from the central government because the contribution of PAD in the local area is only 3.1 percent.
- General Allocation Fund: Other sources of financing are general allocation funds, special autonomy funds, special allocation funds, PAD, tax revenue sharing, and other legal revenues.
- Taxes: Indirect taxes and subsidies influence the price of goods, with net indirect taxes obtained after deducting subsidies.
- Investment: Biak Numfor has investment potential in both the tourism and maritime industries, which can increase regional income through economic growth.
- Income: Income in the form of wages and salaries, interest, land rent, and profits arising from company operations in the area.
- Land & Building Tax: Land & Building Tax (PBB) is also a source of local revenue, with online applications for the management of this tax.
- Land & Building Acquisition Fees: Bea Perolehan Hak Atas Tanah & Bangunan (BPHTB) is a tax levied when someone buys a property, which is also a source of local revenue.
- Land Rent: Land rent is also a source of local revenue, with income derived from the rental of land used by companies or individuals.
- Dividends: Income derived from dividends, received by capital owners from the profits of companies operating in the area.