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View all search resultsGovernors press finance minister to reconsider regional budget cuts
Governors have urged Finance Minister Purbaya Yudhi Sadewa to reconsider sharp cuts to regional transfer funds, warning the move would strain local budgets and may stall infrastructure projects, with smaller, low-revenue regions being hit hardest.
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Finance Minister Purbaya Yudhi Sadewa meets with Riau Islands Governor Ansar Ahmad at the Finance Ministry in Central Jakarta on Oct. 7, 2025. (ANTARA/Diskominfo Kepri)
G
overnors from across the country have urged Finance Minister Purbaya Yudhi Sadewa to reconsider sharp reductions in central government transfers to regional authorities, which they say threaten to undermine local development and essential services.
A meeting held on Tuesday at the ministry’s headquarters in Central Jakarta was attended by 18 regional leaders, including the governors of North Maluku, Aceh, North Sumatra, West Sumatra, Riau Islands, Central Sulawesi and Banten.
Their main concern was a planned reduction in allocations of both the revenue-sharing funds (DBH) and regional transfer funds (TKD) for 2026.
Jambi Governor Al Haris, who also chairs the Association of Indonesian Provincial Governments (APPSI), said many regions were already struggling to balance their 2026 budgets due to the reduced allocation, as well as delayed disbursements from the central government.
“If a region has low locally generated revenue and depends heavily on TKD, it will be difficult for it to pursue development. Talking about vision and mission becomes irrelevant, the priority is simply to keep the government running,” said Al Haris on Tuesday, as quoted by Detik.
With such a drastic drop, he said, some provinces were finding it hard to pay performance allowances or operational expenses, especially for civil servants and contract-based employees.
Read also: Jakarta to issue Indonesia’s first municipal bonds next year
