“REGIONAL ECONOMIC DEVELOPMENTIN BOJONEGORO REGENCY, EAST JAVA”
Wednesday, June 30 2021 10.00am – 12.00am WIB
In line with Law Number 32 of 2004 as amended by Law Number 12 of 2008 concerning Regional Government. In these laws and regulations,is also implemented Regional Autonomy in the process of regional economic development to achieve community welfare. In Regional Autonomy, the Provincial and Regency/Municipal Governments are given the authority to regulate, manage, control and develop their own activities in accordance with the capabilities of their respective regions, including in the fields of Economy and Finance.
Financially, the implementation of regional development is financed by the Regional Revenue and Expenditure Budget. (APBD) and sources of financing permitted by applicable laws and regulations. Regional Economic Development is carried out in a planned manner which is generally marked by the construction of Physical and Social Infrastructure as a prerequisite for economic activity.
In the condition of the Covid 19 Pandemic, the national economy was also affected by a verydecline in economic activity sighnificant, namely the national economic growth (GDP) which contracted – 2.19% in 2020 yoy The same thing also happened in 2 regions including the Java Province East which experienced contraction of regional economic growth (PDRB) – 2.39% yoy in 2020.
Bojonegoro is a regency in East Java which also experienced economic contraction due to Covid-19. However, with the existence of a structured economic development strategy and a systematic and consistent implementation strategy of the Regional Leadership, among others, by the construction of physical infrastructure in the fields of transportation, irrigation, agriculture, strategic industries, especially in the oil and gas sector, which accounts for 30% of national needs and other social infrastructure. Therefore, even though Bojonegoro’s economy was affected by Covid 19, it only experienced a contraction in economic growth of -0.40%, and was the best district in East Java.
The financial management strategy set out in the Bojonegoro APBD is implemented comprehensively and consistently, especially to accelerate infrastructure development. This is very appropriate as the main factor to drive the economy in rural areas of Bojonegoro Regency. In addition, the overall development strategy also involves the financial industry, including the banking sector, as an effort to increase the contribution of the sector as a complement to “financial support” in the Bojonegoro economic development process.
In addition, the government of Bojonegoro Regency has also intensively implemented Presidential Decree No. 23 of 2017 dated August 8, 2017 concerning the National Inflation Control Team which is implemented to the provincial and district levels, namely the Regional Inflation Control Team (TPID) which is in charge of coordinating and synchronizing planning, problem solving and the achievement of inflation policy planning and evaluation monitoring steps. TPID is operated in collaboration with Bank Indonesia Regional East Java. Thus the inflation rate, especially the basic necessities in Bojonegoro can be controlled and does not reduce people’s purchasing power. In addition, policies have also been implemented to improve the community’s ability to utilize financial and banking services in terms of Financial Inclusion (financial inclusion) through coordination with the Financial Services Authority (OJK) for the East Java region.