REPUBLIKA.CO.ID, JAKARTA -- As much as Rp250 trillion of the budget allocated for regional governments is still unused due to slow absorption of the state budget, Home Affairs Minister Tjahjo Kumolo said.

"The absorption of the state budget is impeded. More than Rp250 trillion of the state budget allocated for regional development is still in banks---both regional development banks and private banks," he stated here on Tuesday.

As a result, regional economies are growing at a slower pace, which is affecting national economic growth, as well, he added.

Therefore, the minister urged all regional heads to realize their development programs.

Kumolo threatened to cut the transfer of funds to regional governments next year if they did not realize their development programs soon, the lack of which is leading to low absorption of the funds.

"If regional heads delay the immediate disbursement of funds due to any reason, they will have their funding withdrawn next year. We are still discussing the mechanism of cutting the transfer of funds with the finance minister," he pointed out.

Furthermore, to expedite infrastructural development in regions, Coordinating Minister for Economic Affairs Sofyan Djalil noted that the government will soon issue a presidential regulation or instruction, which will contain anti-criminalization articles to encourage regional officials to realize the assigned budget.

He is of the opinion that several regional officials are afraid of realizing the allocated budget for fear of being involved in corruption cases.

"We have heard that some officials are afraid even when tenders are being offered. Therefore, we will issue a presidential regulation or instruction aimed at expediting not only infrastructural development but government projects, as well," he affirmed.

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