Governor Protests Transfer Funds To Slaughtered Regions, Tito: First Efficiency Exercise

Minister of Home Affairs (Mendagri) Tito Karnavian (Diah Ayu/VOI)

JAKARTA - Minister of Home Affairs Tito Karnavian asked local governments to try to make budget efficiency in their respective regions next year.

This is in response to dozens of governors who will come to the Ministry of Finance's office to protest against cutting transfer funds to the regions (TKD) which was recently decided by the central government.

"Do exercise first. So don't look at numbers, then compared to this year, next year, the numbers will decrease, then react and declare that we are lacking. First, do exercise (train) to make efficiency," Tito said after the Coordination Meeting for the Implementation and Supervision of Regional Government at the Pullman Hotel, Jakarta, Thursday, October 9.

Efficiency that can be done by local governments, according to Tito, can be done at job meeting shopping posts, official trips, food and beverages, to asset maintenance and maintenance. However, local governments are not allowed to tamper with mandatory budgets such as education to health.

"Then the programs must also really, the budget for the program must really be used as goods. Don't use it as a bancakan, get legal problems later," said Tito.

In addition to efficiency, the former National Police Chief also encouraged local governments to be more creative in finding new sources of income that did not burden the small community. He gave an example of optimizing the tax on restaurants, hotels and parking, which had experienced many leaks.

"The Customer may not read, in the bill there is a tax, you know. The question is, is the tax submitted to the regional Dispenda? Not necessarily," said Tito.

Furthermore, Tito asked regional heads to take advantage of central government programs that according to him have economic effects in their regions, such as Free Nutrition Food (MBG), Red and White Cooperatives, Fishermen's Villages, as well as food and energy security programs.

"The positive way is, employment, there is a supply chain, making economic turnover because of the money circulating in the area. Here are just some tips for the region to face the physical year ahead," he said.

For information, the TKD allocation in the 2026 RAPBN is planned at IDR 692,995 trillion, or a decrease of around 24.7 percent compared to the previous year which reached IDR 919.9 trillion. This means that there is a cut of around IDR 226.9 trillion.

Responding to this, as many as 18 governors were present at the Head Office of the Ministry of Finance on Tuesday, October 7 to voice their aspirations.

They expressed objections to the Minister of Finance, Purbaya Yudhi Sadive, regarding the cutting of transfer funds to the regions (TKD) in the 2026 State Revenue and Expenditure Budget Draft (RAPBN).