Transfers To Natural Regions Decline, Sri Mulyani Outspokenly Causes

Minister of Finance Sri Mulyani (Photo: Doc. Ministry of Finance)

Minister of Finance (Menkeu) Sri Mulyani confirmed that the transfer to the regions (TKD) decreased by 1 percent in June 2023. According to the Minister of Finance, the total funds disbursed to the regional government until last month amounted to Rp364.1 trillion.

"Transfers to regions have decreased by about 1 percent compared to the same period in 2022 of IDR 367.7 percent," he said at a press conference today, Monday, July 24.

The state treasurer explained that TKD is a funding support for regional affairs to be used as the construction of public service infrastructure and operations. Meanwhile, several examples of its utilization include the development of education infrastructure, health, drinking water, agriculture, transportation, tourism, and environmental development.

"The distribution of the June TKD has decreased slightly from last year because the local government is preparing requirements for the specific Phase II General Allocation Fund (DAU) distribution," he added.

The Minister of Finance added that the flow of funds was also triggered by the verification process of the remaining School Operational Assistance (BOS) funds from the previous school year.

"For types of TKD whose realization is lower than last year, especially because the terms of distribution have not been received from the regions," he said.

To note, this year the allocation of the transfer budget to the regions reached IDR 814.7 trillion. This figure is almost a third of the total state expenditure in the 2023 State Budget which amounts to IDR 3,061.2 trillion.