JAKARTA - Minister of Finance Purbaya Yudhi Sadewa revealed that the government opened the opportunity to provide additional budget to local governments (local governments) that were under fiscal pressure.
Purbaya explained that the central government had anticipated the impact of the decline in the Regional Transfer (TKD) on the regional financial condition.
He emphasized that the Ministry of Finance also continues to monitor the fiscal capacity of all local governments, especially those that have the potential to experience difficulties in meeting mandatory expenditures, including salary payments for civil servants.
"Since there has been a cut in TKD, we have calculated that there may be areas that cannot survive or have less money to pay salaries or minimum activity. So I monitor it in every region in Indonesia, which is approximately (money) less we will calculate," he said in a press conference, quoted Wednesday, July 29.
For information, the realization of the TKD in Semester I 2026 was recorded at Rp357.4 trillion, down 11.2 percent compared to the same period last year which reached Rp402.5 trillion.
Meanwhile, the TKD ceiling in the 2026 State Budget is set at IDR 693 trillion, lower than the ceiling in 2025 which reached IDR 919.9 trillion.
He said that almost all areas facing budget pressure had the opportunity to obtain additional funds, but the final decision on their distribution would still wait for President Prabowo Subianto's direction.
"Maybe almost all of the 490 districts will get additional funds, but this depends on what the President's instructions will be. So there is a chance, just wait (wait) for the President's instructions, what it is," he said.
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