Governor Bobby Asks To Cut Transfer Funds Not To Disturb Regional Development

North Sumatra Governor Bobby Nasution (ANTARA)

The Governor of North Sumatra (North Sumatra) Bobby Nasution requested that the budget cuts from transfer funds from the central government not interfere with regional development.

"Earlier we only provided information on the impact of this cut. Maybe the province has an impact, but the small districts are sorry," said Bobby after accompanying the Minister of Housing and Settlement Areas of the Republic of Indonesia Maruarar Sirait to inspect subsidized houses at SMK Residence 2 Housing, Sentosa Street, Lubukpakam, Deli Serdang Regency, North Sumatra, Tuesday, October 7, reported by ANTARA.

Like the Nias Islands, he gave an example, there are five regencies/cities in North Sumatra, namely Nias, South Nias, North Nias, West Nias, and Mount Sitoli with a small source of local revenue (PAD).

The governor assessed that of course more attention is needed for districts/cities in North Sumatra with these small PAD sources, while development programs must continue.

"If we are in Nias or in other areas where PAD is a small affirmation area, if possible, pay more attention," said Bobby.

His party also emphasized that together with other regional heads, they had met directly with the Indonesian Minister of Finance Purbaya Yudhi Sadivewa at the Indonesian Ministry of Finance (Kemenkeu) Jakarta.

The governor said that the central government through the Ministry of Finance cut the North Sumatra Provincial Government (Pemprov) transfer funds by IDR 1.1 trillion in 2026.

"IDR 1.1 trillion, yes (cut down, red). Earlier we were also with the governor to the Ministry of Finance to discuss this," explained Bobby.

Indonesian Finance Minister Purbaya Yudhi Sadive explained the reason for the government to cut transfer funds to the regions, while emphasizing that net regional budgets actually increased through programs allocated by the central government.

"Some regents from several places came here. At first they wanted to meet me all, I just met representatives," said Purbaya Yudhi Sadive at the State Finance Building (GKN) Surabaya, East Java, Thursday (2/10).

He explained that the transfer cuts were carried out due to budget discrepancies in the regions. The central government, he continued, wants to optimize the performance of using the budget to be more effective and clean.

According to him, although transfers to regions decreased by Rp200 trillion, the program for regions increased significantly from Rp900 trillion to Rp1,300 trillion.

"So the economy in the regions actually does not decrease, instead it is added net," he said.