Mandailing Natal Regency Construction Expensive Index for 2023

The Regional Autonomy Policy gives each region the authority to explore its potential as a source of regional income to finance regional expenditure. However, it is realized that each region has different capabilities and potential, which can lead to fiscal imbalances between regions. To overcome this inequality, the central government allocates funds sourced from the National Revenue and Expenditure Budget (APBN) to fund regional needs in implementing decentralization. This is regulated in Law Number 25 of 1999 concerning financial balance between the central and regional governments and has undergone several changes, until the last time based on Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments. The Central Statistics Agency (BPS) as a Non-Ministerial Government Institution which is responsible for providing basic statistical data in Indonesia has carried out IKK calculations since 2002 for the purposes of calculating the 2003 DAU which was then continued until now. The IKK data is intended to see the comparative level of prices of construction goods/services between regions compared to the prices of construction goods/services in a reference city.