Central Government Cuts Transfer Funds Of IDR 15 Trillion To Jakarta, DKI Provincial Government Targets Private Revenue

Special Staff To The Governor Of DKI Jakarta For Social Communication Chico Hakim/PHOTO: Diah Ayu-VOI

JAKARTA - Special Staff to the Governor of DKI Jakarta for Social Communication Chico Hakim revealed that the DKI Provincial Government is looking for a solution to the impact of cutting transfer funds to the regions for Jakarta up to Rp15 trillion.

One of the targets of the DKI Provincial Government is to increase regional income from the private sector. Starting from cooperation in development programs to withdrawing compensation funds from building floor coefficients (KLB).

"Jakarta has a lot of spaces that can be filled by the private sector, right? Creative financing. So creative funding through cooperation, investment, and others," Chico told reporters, Monday, October 6.

Pramono, continued Chico, has instructed the DKI Regional Development Planning Agency (Bappeda) to re-process the budget that has been prepared next year.

"Bappeda still has to process it again. But what is certain is to be reminded not to touch things related to the needs of the community, especially at the lower level," said Chico.

The DPRD and the DKI Provincial Government have actually planned the Jakarta APBD next year with a nominal jumbo amount of IDR 95.35 trillion.

From this plan, it is projected that transfer receipts in the form of profit-sharing funds (DBH), general allocation funds (DAU), and special allocation funds (DAK) from the central government in 2026 will reach Rp26 trillion.

However, by cutting transfer funds from the Ministry of Finance recently, next year's projected DKI APBD will have to be reduced to IDR 79.06 trillion. This was revealed by Pramono in a plenary leadership meeting by collecting all DKI Provincial Government and BUMD officials.

"The Deputy Governor and I will directly lead the use of this budget. All OPDs must make efficiency. We carry out a thorough evaluation, combing back non-priority spending," Pramono explained.

However, Pramono emphasized that his subordinates should not interfere with the budget allocation for the distribution of social assistance directly felt by the community.

"What should not be reduced are KJP and KJMU, because this is the basis for all of us to make improvements in Jakarta, especially for families who are less fortunate or unable to afford it," he added.