Funds For TKD Dipangkas, DPR Calls Fiscal 80 Percent Local Government Depending On Center

Deputy Chairperson Of Baleg DPR/Ahmad Doli Kurnia (center)/DOK VOI

JAKARTA - Deputy Chairman of the Legislation Body (Baleg) of the DPR from the Golkar faction, Ahmad Doli Kurnia, said that around 80 percent of local governments in Indonesia still rely heavily on the central government.

This was said by Doli in line with the plan to cut regional transfer funds (TKD) in the 2026 State Budget, which sparked protests from a number of regional heads.

"We just saw that 80 percent of local governments rely heavily on fiscal matters with the center," said Doli in a discussion entitled 'Pro Against Regional Head Election Mechanisms' which was monitored online, Wednesday, October 15.

In the 2025 State Budget, the government has set the TKD allocation of IDR 919.8 trillion. However, for 2026, the government had proposed a drastic reduction to around IDR 650 trillion.

However, after discussing with the DPR, it was agreed that the figure would increase slightly to around Rp. 693 trillion.

The former chairman of Commission II of the DPR understands the policy of reducing TKD funds by the central government. Because according to him, this cut is in line with the vision of efficiency and independence promoted by President Prabowo Subianto.

"I think the policy of reducing transfer funds to the regions is understandable. I try to read Mr. Prabowo's way of thinking, his vision is always efficiency and independence," said Doli.

Doli also encouraged regional heads not only to rely on funds from the center. However, starting to explore local potential as an alternative source of financing.