Purbaya Promises TKD Can Increase By 2026 If Local Government Improves In The Next 2 Quarters

JAKARTA - Minister of Finance Purbaya Yudhi Sadive emphasized that the reduction in the Regional Transfer Budget (TKD) did not occur during his leadership as state treasurer.

He said that since officially serving as finance minister on September 8, 2025, he has actually increased the TKD budget allocation according to the proposal of the Minister of Home Affairs Tito Karnavian and admitted that the increase was still much lower than the realization of TKD in 2025.

For information, in the 2026 State Revenue and Expenditure Budget Draft (RAPBN), the TKD budget was initially set at IDR 649.99 trillion, a decrease of IDR 269 trillion compared to the 2025 State Budget which reached IDR 919.87 trillion. However, after Purbaya took office, the 2026 TKD budget increased by IDR 43 trillion, bringing the total to around IDR 693 trillion.

However, Purbaya said that the central government had a strong reason not to significantly increase the TKD value, namely the still finding of corruption cases in TKD in local governments and the slow process of budget absorption.

"So, apparently in our leadership there is a kind of furniture, because in the local government a lot of money is not spent on target, it is corrupted, so from above it is cut like that. At that time I was also a bit strange why it was cut that big," he said at the National Chamber of Commerce and Industry (Kadin Rapimnas), Monday, December 1.

Therefore, he emphasized that the increase in the TKD budget in the future really depends on the commitment of local governments and stakeholders to fix the problem.

According to him, this is important in order to have a solid basis when submitting the proposed increase in the TKD budget to President Prabowo Subianto.

"I said I gave me a reason to go before the president and said the local government's money had to be increased. How to do it? show me the last two quarters, the current quarter and the first quarter of next year the local government money is spent on target and there are no cases of corruption and the impact is visible in the economy," he explained.

According to him, if the problem can be resolved, he can propose additional TKD when meeting with President Prabowo in the second quarter of 2026.

"If that happens, then in the second quarter of next year I will face the president and say sir the conditions are good, the local government is disciplined, the local government is good, there is nothing wrong with us increasing the budget. Without it, I can't say anything, when I faced it, it was even set," he said.

He added that in the first quarter of 2026, he would conduct an evaluation to assess the extent to improve budget absorption in local governments.

"The first quarter of next year I will evaluate what kind of budget absorption is good or not so tell the local government, give me a reason to go before the president and say the local government deserves more," he said.