Tangsel Regional Budget Absorption Only 31 Percent by June 2026, BKAD Optimistic for Second Semester Increase

Tangsellife.com - The realization of the South Tangerang City Regional Revenue and Expenditure Budget (APBD) absorption by the end of June 2026 reached 31 percent. The South Tangerang City Government (Pemkot) is optimistic that budget realization will increase in the second semester along with the acceleration of program implementation across all regional work units (OPD).

Head of the South Tangerang City Regional Finance and Asset Agency (BKAD), Hadi Widodo, said that this achievement is the budget realization as of June 30, 2026.

"Currently it's 31 percent, up to the end of last month, as of June 30. We have to be optimistic," said Hadi, Monday (6/7/2026).

Procurement Process Becomes the Main Obstacle

Hadi explained that in general, there are no issues regarding budget availability or fund disbursement processes. The biggest obstacle lies in the procurement of goods and services which is still ongoing in each OPD.

According to him, construction projects require a long procurement stage, which affects the realization of budget absorption.

"In general, it might be in the procurement process. If from the side of budget availability, God willing, we are ready, there is indeed. But perhaps each OPD has its own technical constraints," he said.

He added that physical development projects have the largest budget portion, so delays in the procurement process also affect the overall APBD absorption percentage.

Project Payments Made After Work is Completed

BKAD also explained that payments to third parties are only made after the physical work is completed.

This condition causes a number of ongoing projects not to be recorded as budget realization.

"For physical projects, the work is completed first, then paid to the third party," explained Hadi.

Inspectorate is the OPD with the Highest Absorption

Hadi mentioned that regional agencies handling physical development are still the group with the lowest budget absorption rate.

Conversely, OPDs dominated by operational spending recorded higher budget realization.

"The highest absorption is the Inspectorate. Then the Secretariat of the Regional Council and the Regional Secretariat also have high absorption," he said.

BKAD Encourages Acceleration in the Second Semester

Entering the second semester of the 2026 fiscal year, BKAD will continue to encourage the acceleration of activity implementation in all OPDs.

In addition, various technical obstacles that hinder budget absorption will be identified so that they can be resolved immediately.

"There must definitely be acceleration and resolution of obstacles. First, find out what the obstacles are, then find solutions. From the policy side and budget availability, there are no obstacles," concluded Hadi.