Minister of Finance Sri Mulyani Indrawati explained that the regional transfer budget (TKD) which experienced a decline in the 2026 State Revenue and Expenditure Budget Draft (RAPBN) was caused by the transition of budget to central government spending.
In the 2026 RAPBN, the TKD budget is set at IDR 650 trillion, correcting 24.8 percent of the 2025 TKD projection of IDR 864.1 trillion.
"If the TKD decreases, the increase from central government spending in the regions will increase much higher," Sri Mulyani said at the 2026 RAPBN Press Conference and Financial Note reported by ANTARA, Friday, August 15.
According to him, the benefits of the central government's spending program are also felt by people in the regions.
For example, the Family Hope Program (PKH) and Basic Food Card social protection programs, the Garuda People's School and Superior School education programs, Free Nutrition Food (MBG), energy and non-energy subsidies, to food security programs such as food barns and food reserves by Bulog.
The Minister of Finance said the programs, and other programs whose benefits were directly felt by the community, ate an allocation of Rp1,376.9 trillion from central government spending in the 2026 RAPBN.
"For TKD, I think the compensation from ministries/agencies whose expenditures in each region must be further coordinated with local governments, so that both the government and the people understand their programs," he said.
He also said it was in line with President Prabowo Subianto's directives.
"That's what the President hopes, the ministers must be diligent in conveying to each region," he added.
The Minister of Finance admitted that he would also continue to coordinate with the Ministry of Home Affairs (Kemendagri) to overcome service problems that occur in the regions.
For the record, TKD 2026 amounting to Rp650 trillion consists of Revenue Sharing Funds (DBH) Rp45.1 trillion, General Allocation Funds (DAU) Rp373.8 trillion, Special Allocation Funds (DAK) Rp155.5 trillion, Special Autonomy Funds (Otsus) Rp13.1 trillion, Special Funds (Dais) Yogyakarta Special Region Rp500 billion, Village Funds Rp60.6 trillion, and fiscal incentives Rp1.8 trillion.
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