Funds Will Be Cut, Sultan HB X Will Not Lobby Center

Governor of the Special Region of Yogyakarta (DIY) Sri Sultan Hamengku Buwono X. BETWEEN/Luqman Hakim

YOGYAKARTA - Governor of the Special Region of Yogyakarta (DIY) Sri Sultan Hamengku Buwono X emphasized that he would not lobby or negotiate with the central government regarding the plan to cut the Special Fund (Danais) up to 50 percent for the 2026 fiscal year.

" Reduced, yes, that's it. Yes, that's the condition. I'm sure later if the economy gets better, it will definitely be increased," said Sultan HB X, at the Kepatihan complex, Yogyakarta, Thursday, August 21, as reported by ANTARA.

The statement was made by Sultan HB X in response to the plan to reduce Funds by the central government. In 2024 the DIY Special Funds reached IDR 1.2 trillion, down to IDR 1 trillion in 2025, and in 2026 it is planned to be cut to 50 percent or around IDR 500 billion.

The Sultan emphasized that he was reluctant to lobby additional Danais, because there was a political burden to be borne.

The King of the Yogyakarta Palace does not want Danais to be perceived as compensation for the contribution of his father, Sultan Hamengku Buwono IX in the early days of Indonesian Independence.

"I don't want to be in the political sense, the Privilege Fund was equalized during the Sultan HB IX 'swargish' time (deceased) to help finance the Republic. Don't let the deceased help out sincerely, not to be compensated with this. So that's a burden for me," said Sultan.

Even so, the Sultan did not prohibit the DPR or DIY DPRD from lobbying the central government.

"If the DPR or DPRD do (lobbies) yes, go ahead. But if I am to submit negotiations so that Danais is added and so on, I have a burden," he said.

Sultan explained that the programs financed by Danais were proposed two years earlier, so that adjustments must automatically be made in the event of a budget reduction.

"So if it is reduced, it is because the Ministry of Finance and the Ministry of Home Affairs have calculated the existing changes, so we will adjust them," he said.

Even though there is currently a plan to cut, Danais is the mandate of the DIY Specialty Law whose existence remains guaranteed. He is also optimistic that the allocation of Funds will increase again when national economic conditions improve.

"I am sure that later if the economy gets better, it must be added. It will not reduce. Because it is included in the law," he said.

Paniradya Pati Kaprihan DIY Aris Eko Nugroho said the Rp500 billion figure circulating was still limited to the RAPBN financial note read by President Prabowo Subianto in the DPR session.

According to him, the DIY Regional Government has not been able to confirm the amount of the Fund, because the final decision is in the 2026 State Budget.

"Whatever is allocated, that's what we can spend. At this time, we are waiting while preparing an activity program, we will examine one by one," said Aris.

According to him, if the cuts actually occur, all Danais-funded programs will be reviewed. Many programs are mandatory and routine, so inevitably they will be adjusted to the amount of funds transferred by the central government.

This condition, according to Aris, is an early warning for the DIY Regional Government to conduct evaluations from now on, although the adjustment scheme can only be determined after the 2026 RAPBN is designated as the State Budget.

"If it has become the new state budget, we can talk a lot, but before becoming the state budget, it will be part of 'warning' for us," he said.

Previously, DIY DPRD Commission D member Fajar Gegana conveyed the plan to cut Funds from Rp1 trillion to Rp500 billion for 2026. The information, according to him, was obtained from a meeting between the Ministry of Finance (Kemenkeu) and the DPR which was then submitted to the DIY DPRD.