Indonesia promotes digitalization to boost regional revenue and poverty alleviation

The Indonesian Ministry of Home Affairs is encouraging local governments to expand digital transaction systems beyond simple non-cash payment channels. Teguh Narutomo, Director of Regional Revenue, stated that digitalization should evolve into an integrated ecosystem for managing regional income to boost Local Original Revenue (PAD). This transformation involves integrating data from collection and billing to reconciliation and reporting.

Separately, Budiman Sudjatmiko, head of the Agency for Poverty Alleviation Acceleration (BP Taskin), emphasized that village digitalization must serve as a tool for economic movement and poverty reduction rather than just improving administrative services. During a visit to Duda Timur Village in Bali, he noted that accurate digital data is essential for targeting government interventions and connecting local food supplies to national priority programs, such as the Free Nutritious Meal program.