Report To President, Tito Reveals Funds Of IDR 203 Trillion Depositing In Regional Cash

Minister of Home Affairs Tito Karnavian. (Between)

JAKARTA - Minister of Home Affairs Tito Karnavian came to the Palace to report the latest regional conditions to the President, ranging from inflation, economic growth, budget absorption, to poor health services in Papua. Tito said that national inflation was controlled at 2.86% year on year and 2.1% year to date, even food was a contributor to deflation. "The rice actually came out of the list of problematic commodities," he told the media crew after a meeting at the Jakarta Presidential Palace Complex, Monday, November 24.

Even so, Tito highlighted the increase in shallots, chilies, and broiler eggs. Commodity is important for the Free Nutrition Food program. He also noted an increase in gold prices due to geopolitical and de-dollarization.

The biggest problem is in the absorption of regional budgets. Of the 552 regions, the average income is 82 83%, but the new expenditure is 68%. The total funds that are still stored in regional banks reach 203 trillion," said Tito. He said the causes included the newly appointed regional head in February 2025, year-end contract payments, and preparations for the January operational salary. The President highlighted this and asked for acceleration.

Regarding the regional economy, Tito reported a striking contrast. North Maluku grew the highest, while Central Papua plunged to minus 8% as Freeport exports were suspended, smelters caught fire, and landslides that hampered production.

Tito also asked the President to give direct directions to the Committee for the Acceleration of Development of Papua so that the acceleration of development runs effectively.

Regarding the issue of Papuan education, Tito highlighted 56 Papuan students abroad who had not been paid by the regional government with arrears value of Rp37 billion. He proposed that the financing be taken over by the LPDP, and the President agreed.

Meanwhile, regarding the polemic of Papua's health services, Tito conveyed the President's order to conduct a total audit. "The Minister of Health and the Ministry of Home Affairs team tonight went to Jayapura. Technical audits and regulatory audits are carried out all at once. We don't want this to happen again," he said.