Transfer Realization To Regions Until Semester I-2025 Reaches IDR 400.6 Trillion

Minister of Finance Sri Mulyani (Photo: Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati revealed that the realization of Transfers to Regions (TKD) until Semester I in 2025 reached IDR 400.6 trillion or 43.5 percent of the 2025 APBN ceiling of IDR 919.8 trillion or higher than the realization in the same period the previous year.

Sri Mulyani said that the high realization was driven by an increase in state revenues which were divided through the Revenue Sharing Fund (DBH), an increase in the allocation of the General Allocation Fund (DAU), and improvement in the performance of local governments in meeting budget distribution requirements.

"TKD is intended so that the community (regional) can also get good service, be it in the fields of education, health, infrastructure, and also other services properly," he explained in his statement, quoted Friday, July 11.

According to him, the distribution of TKD is used to support equitable distribution of public services in various sectors such as in the field of education, TKD encourages the rehabilitation of classrooms, school construction, and the provision of School Operational Assistance (BOS) and Teacher Professional Allowances (TPG).

Then in the health sector, TKD is used for the construction of hospitals, health centers, and the provision of medical devices. Meanwhile, in the infrastructure sector, TKD finances the construction and rehabilitation of roads, bridges, and a drinking water supply system.

In addition, TKD also supports the payroll of 3.56 million Regional ASN and the appointment of 377 thousand honorary staff to become PPPK through performance-based DAU.

He said that the Government continues to strengthen TKD policies to make them more efficient, on target, and have a real impact on the community, including through reforms in the distribution of Village Funds, regional fiscal incentives, and the development of innovative financing.

"We will continue to encourage regional performance in investment and economic growth. So in that case, various good steps are in terms of revenue by optimizing regional taxes and levies, and transfers that are increasingly based on regional performance," he concluded.