Central Government Transfer Funds To Jakarta Cut, DPRD: Time To Eradicate Budget Concession

- DKI Jakarta DPRD Building (@pemprov dki)

JAKARTA - The central government has cut the distribution of transfer funds for the DKI Jakarta APBD in 2026 to Rp15 trillion. It is estimated that Jakarta only received a profit-sharing fund of Rp11 trillion.

Secretary of Commission E of the DKI Jakarta DPRD Justin Adrian Untayana assessed that the cut in profit-sharing funds could be used as an opportunity for the DKI Provincial Government to cut expenses which he has considered a waste of the APBD.

According to him, wasteful spending needs to be stopped, and the DKI Jakarta Provincial Government focuses on spending efficiently for the needs of other more basic communities.

"If indeed the next APBD must be trimmed and far from previous estimates, then this is the time to eradicate waste of the budget so that its designation is more appropriate for the main needs of the people in Jakarta," Justin said in his statement, Thursday, October 2.

According to Justin, the DKI Provincial Government must smartly and strategically rearrange the spending posture in the draft APBD in 2026 by prioritizing the community welfare program.

"With the overall decline in the 2026 APBD projections, it is clear that strategic interests such as public transportation subsidies, free schools, improving the quality of education, and so on must come first," he said.

As previously reported, the chairman of the DKI Jakarta DPRD, Khoirudin, revealed that he had just received information that the central government had cut transfer funds to DKI Jakarta in the draft regional revenue and expenditure budget (APBD) for the 2026 fiscal year.

In fact, the DPRD and the DKI Jakarta Provincial Government have agreed on a General Policy on Budget and Priority for the Temporary Budget Ceiling (KUA-PPAS) for the 2026 APBD. From this draft, it is projected that transfer receipts from the center such as profit-sharing funds (DBH), general allocation funds (DAU), and special allocation funds (DAK) will reach Rp26 trillion.

"Our DBH will change around Rp. 15 trillion, the remaining Rp. 11 trillion. Of course this will change the shape of the very significant number of changes while we are already MoU KUA-PPAS, already (compiled) RKA (budget work plans)," Khoirudin told reporters.

The DPRD and the DKI Provincial Government have planned the Jakarta APBD next year with a nominal jumbo amount of IDR 95.35 trillion. This figure is up 3.8 percent compared to the APBD value for the 2025 fiscal year which amounted to IDR 91.86 trillion.

By cutting the transfer funds from the central government to DKI Jakarta to only Rp11 trillion, the value of the DKI Regional Budget next year has the potential to decline.

"Because we have mou with a figure of Rp. 95.3 trillion. If we look at DBH today, (APBD 2026) we are around Rp. 78 trillion or Rp. 79 trillion. So the changes are very far away," said Khoirudin.

Khoirudin admitted that the reduction in transfer funds from the central government to Jakarta made his party confused about reshuffling the APBD next year. Because this has never happened before.

"We have to consult with the Ministry of Home Affairs. What we have to do is we must not guess, we must not move alone without guidance. If the regulations are not yet available, I will also write to the executive what to do," said Khoirudin.