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KPKNL Surakarta > Artikel
How to Bring Out the KPKNL Position in the Regional Economic Development
Andar Ristabet Hesda
Senin, 23 Agustus 2021   |   513 kali

It might not be grandiose to mention that KPKNL is one of the development agents at the regional level. By function, KPKNL has an essential role in ensuring the effectiveness of government spending, especially in terms of capital expenditures and state (financial) claims. Moreover, KPKNL is also in charge of public auction execution due to legal enforcement and an alternative transaction mechanism in society.

These roles indicate that we might need to scrutinise and begin to answer whether and in what aspect the KPKNL could alter the local economic performance. This idea is not new, but how we evaluate, measure, and publish might provide a fresh perspective in delineating the KPKNL position as a government institution in the region. Here, I explore the three main areas that might become the critical point on how the KPKNL affects the local economy: asset market demand, non-performing loan, and institutional role model.

Asset Market Demand

KPKNL has been developing many innovations to ensure the government assets are appropriately recorded and updated. Asset profiling as an effort to optimise asset utilisation has also been initiated recently. However, how the profiling helps close the asset demand is less likely to be evaluated or implemented. This aspect might need to be elaborated to show how asset utilisation fulfils the physical asset market demand.

To do so, firstly, we should clarify how much the demand is. The need for physical state assets could be from the central government, local institutions, or society. If we can compare the need, the asset profiling, and the gap, it might be a chance for KPKNL to exemplify how the KPKNL participate in stimulating the asset market. Besides that, the need for the physical asset is not only limited to economic orientation; it also includes the social demand, such as the alteration of Wisma Atlet utilisation as a quarantine place and hospital or the other government building that turns to health facilities during pandemic COVID-19. Both scopes (economic and social demand) might be less exposed using the KPKNL perspective.

Non-Performing Loan

The role of the KPKNL auction in reducing the non-performing loan in the banking sector is undoubtedly valid. However, we might rarely evaluate it in performance meetings or show it in public communication. In doing so, firstly, we probably should expose how dominant the auction request from the banking sector is. Then, it is followed by exhibiting the performance of the auction from the banking sector. If we can convincingly show the data on how the auction mechanism has been succeeding in selling the collateral of bad debt, we could claim the role of KPKNL in contributing to non-performing loan alleviation and encourage the healthy environment of the credit system in the banking sector.

Institutional Role Model

Since 2016, the Central Government Financial Statement obtained an unqualified opinion from BPK.  One of the reasons for this achievement is the significant enhancement in state asset management, especially in accounting standard implementation. Besides that, the Ministry of Finance has become the role model in the merit system and bureaucratic reform. These accomplishments should be expanded to local government via the regional branch of the Ministry of Financial, such as KPKNL. Some years ago, many KPKNL provided an assistant to re-value the asset of the local government. Unfortunately, this effort was not thoroughly followed by the support for the local asset management.

Moreover, some KPKNL has also been recognised as the unit with integrity and no corruption predicate (Zona Integritas Wilayah Bebas Korupsi). Therefore, these experiences might be a foundation for becoming the institutional role model and creating a positive spillover in building good governance in the local government. Why does local governance matter? Many studies showed that institutional governance at the local level has a crucial role in affecting local economic outcomes, for example, through decreased transactional cost and increased investment.

Author: Andar Ristabet Hesda (KPKNL Surakarta)

Photo: @fikrirasyid

Disclaimer
Tulisan ini adalah pendapat pribadi dan tidak mencerminkan kebijakan institusi di mana penulis bekerja.
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