Minister Of State Secretary: Regional Heads Have Been Given An Explanation Of TKD Cuts

Photos between

Minister of State Secretary (Mensesneg) Prasetyo Hadi said regional heads had been given an explanation regarding the dynamics of cutting Transfers to Regions (TKD) which has recently caused unrest in a number of provinces.

According to Prasetyo, the meeting between the governors and the Ministry of Finance was not a form of protest, but rather a conveyation of aspirations regarding the TKD distribution scheme.

"It's not raiding, it's not. They conveyed what became the dynamics, and yesterday it was received by the Minister of Finance, also by the Minister of Home Affairs. We provide a joint understanding that the transfer problem to this area is now divided into two, namely direct transfers to the regions and indirect transfers to the regions," Prasetyo said in a voice recording received on Saturday.

He explained that the indirect transfer scheme includes various central government national programs that are also accepted by people in the regions, such as the Free Nutrition Food (MBG) program which is allocated around Rp335 trillion in the State Revenue and Expenditure Budget (APBN).

"Well, this is also enjoyed by all regions, right," said Prasetyo.

Responding to concerns some regional heads who want to channel the budget according to their political campaign promises, Prasetyo said that the central and regional governments need to harmonize budget governance so that each program really has an impact on the community.

"That is what is given understanding and explanation, by now we are jointly between the central government, provincial governments, later local governments, let's improve our budget governance so that we design all of our programs that really have an impact on the interests of the community," he said.

Previously, the Chairperson of the Association of Indonesian Provincial Governments (APPSI) as well as the Governor of Jambi Al Haris revealed a number of challenges faced by the regions due to reduced transfers to the regions (TKD), after meeting with the Minister of Finance Purbaya Yudhi Sadive in Jakarta, Tuesday (7/10).

Haris said the reduction in TKD had a major impact on regional capabilities, including paying additional income allowances (TPP) and managing employee operational spending.

According to him, many regions are now facing difficulties in maintaining the balance of the 2026 Regional Revenue and Expenditure Budget (APBD) due to reduced allocation of General Allocation Funds (DAU), Revenue Sharing Funds (DBH), and delaying channels.

He added that local governments with small Regional Original Revenue (PAD) rely heavily on Transfers to Regions and Village Funds (TKDD), so that this reduction in funds has the potential to reduce regional capacity in carrying out priority development programs.