Commission II Of The DPR Will Call The Regional Government-Kemendagri To Discuss Funds Depositing IDR 234 Trillion At The Bank

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JAKARTA - Member of Commission II of the House of Representatives Muhammad Khozin, said that his party would summon a number of local governments (Pemda) and the Ministry of Home Affairs (Kemendagri) to discuss local government funds deposited in the bank up to IDR 234 trillion.

According to him, the local government must provide clarification regarding the deposited funds.

"The local government must clarify the deposit of hundreds of trillions of public funds. The funds are deliberately placed in banks or stored because they follow an increasing spending pattern at the end of the year?" Khozin told reporters, Thursday, October 23.

Khozin said that local government funds that are deliberately placed in banks will have an impact on the non-optimal function of local governments in public services and national strategic programs to be disrupted.

"If the APBD funds are deliberately parked, this is the problem, because it will disrupt public services and become an obstacle to the growth of the economy in the regions," he said.

However, if local government funds are placed in banks because they follow an increasing spending cycle at the end of the year, Khozin encourages changes in state spending schemes including regional spending.

The trend of increasing budget absorption at the end of this year occurred at the center and regions. Minister of Finance Purbaya should be able to change this classic pattern, the goal is that the state budget is really used for the public in a sustainable manner," said Khozin.

Khozin also questioned the effectiveness of supervision by the Ministry of Home Affairs (Kemendagri). He asked the Ministry of Home Affairs to provide guidance and supervision, even administrative sanctions if the local government violates the provisions of the legislation.

"The Ministry of Home Affairs should be able to optimize supervision and guidance, including taking firm steps in the form of administrative sanctions if there is a violation of regulations," said the PKB legislator.

The member of the commission in charge of domestic government affairs and regional autonomy said there were a number of regulations that could be used as instruments for the central government in providing guidance and supervision. In fact, there are administrative sanctions in financial governance in the regions if regulations are violated.

"Article 68 of Law Number 23 of 2014 concerning Regional Government, Government Regulation No. 12 of 2017 concerning Supervision of Regional Government Implementation, and Government Regulation 12 of 2019 concerning Regional Financial Management," explained Khozin.

Therefore, Khozin said, Commission II of the DPR needs to summon the Ministry of Home Affairs and the Regional Government whose APBD is parked at the Bank. The summons is needed to clarify data from Bank Indonesia.

"It is necessary to be summoned to clarify to the Ministry of Home Affairs regarding the supervision and guidance of local governments as well as to summon local governments whose funds are parked a lot at banks," concluded Khozin.

Previously, Minister of Finance (Menkeu) Purbaya Yudhi Sadive highlighted the phenomenon of increasing local government-owned funds (Pemda) that had not been absorbed and were still deposited in banks.

Purbaya revealed data from the Ministry of Finance (Kemenkeu) as of the end of September 2025 where there were local government funds that deposited the amount reaching Rp 234 trillion.

According to Purbaya, this condition shows that regional spending is still slow, even though the central government has distributed funds quickly.