Subdistrict Funds Faced with a Dilemma
Subdistrict administrations can be said to facilitate public and environmental services for urban residents.
Residents of Menteng Atas Village, Setia Budi Sub-district, South Jakarta, queue to process population documents and other permits, Menteng Atas Village Head Office, Setia Budi District, South Jakarta, on Friday (20/7/2018).
Subdistrict funds are not as popular as the village funds. Their nominal value is also smaller. However, the funds’ existence has created debate over the relationship between central and regional finances. Beyond this, a dilemma arises in relation to urban growth and public perception.
The 2019 and 2020 state budgets allocated Rp 3 trillion to the subdistrict funds. The funds were disbursed to 8,212 subdistricts in allocations of between Rp 352.9 million and Rp 384 million for each subdistrict, depending on their category. This is a small amount compared to the total village funds of around Rp 1 billion. Moreover, the total number of subdistricts registered in 2019 covered only 10.2 percent of the total number of administrations at the village/subdistrict level in the country.