Government Increases TKD 2026 Budget To IDR 693 Trillion

Minister of Finance Purbaya Yudhi Sadive had a meeting with Commission XI of the Indonesian House of Representatives (photo: Aris Nurjani/VOI)

JAKARTA - The Ministry of Finance (Kemenkeu) has decided to increase the budget allocation for Transfers to Regions (TKD) in the 2026 RAPBN.

The decision was conveyed by the Chairman of the Budget Agency (Banggar) of the DPR RI, Said Abdullah, in a working meeting with the Minister of Finance Purbaya Yudhi Sadive.

This meeting is part of the agenda for discussing and ratifying the Work Committee (Panja) report, as well as making level I decisions on the Draft Law on the State Budget for Fiscal Year 2026.

The increase in the TKD budget was agreed upon in the Banggar meeting which was held on Thursday, September 18. In this agreement, the TKD budget was increased to Rp693 trillion, or an increase of Rp43 trillion from the initial target of Rp650 trillion.

"Transfers to regions that were initially Rp. 649.995 trillion to Rp. 692.995 trillion or an increase of Rp. 43 trillion. Of course, this increase of Rp. 43 trillion is in accordance with the request from commissions and various reports, basically TKD matters from Rp. 650 trillion to Rp. 693 trillion. , September 18th.

Previously, Minister of Finance Purbaya Yudhi Sadive said there was no longer any deduction of transfer funds to the regions (TKD) in the preparation of the 2026 RAPBN.

Meanwhile, regarding the possibility of adding TKD, Purbaya said the government still had to discuss with the DPR.

"We will not cut it again," said Purbaya when answering questions about transfer funds to the regions at a press conference at the Indonesian Presidential Palace, Jakarta, Wednesday, September 10.

Purbaya emphasized that government policies related to transfer funds to regions are in principle directed to encourage economic growth.

"We will tend to give, implement fiscal policies that encourage economic growth," he said.

According to him, the strategies put forward are better budget absorption, and better budget use management.

"What is important is that the absorption of the budget is better so that it does not interfere with the conditions, the limitation of our financial system," continued Purbaya.

Meanwhile, Purbaya went before President Prabowo at the Presidential Palace to report the results of Purbaya's inaugural working meeting with Commission XI of the DPR. The two also discussed discussing the 2026 RAPBN.

"The numbers are still being discussed. So it hasn't broken yet. However, we will report what the progress looks like," said Purbaya.

Minister of Finance Purbaya also reported the government's proposal regarding changes to several budget posts in the 2026 RAPBN. "About the possible budget changes, but I can't talk about them because they are still being discussed with the DPR," he said.

In a meeting at the DPR, Purbaya and Commission XI discussed the Ministry of Finance's Budget Work Plan (RKA) in 2026, which amounted to Rp52.16 trillion.

Purbaya, in his presentation, said that the growth of gross domestic product (GDP) in the 2026 State Budget Draft (RAPBN) is targeted at 5.4 percent, higher than the 2025 State Budget target of 5.2 percent. In terms of GDP components, investment projections have slowed from 5.5 percent this year to 5.2 percent next year.

In contrast, the target for household consumption growth increased from 5.0 percent this year to 5.2 percent next year. Then, exports rose from 5.4 percent to 6.7 percent. As for sector, agriculture is estimated to grow 4.1 percent, manufacturing 5.2 percent, and information and communication 8.0 percent next year.