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View all search resultsThe finance minister is taking the precaution to verify local administrations' claims about a funding squeeze as regional transfers fell 11.2 percent yoy to Rp 357.4 trillion (US$20 billion) as of end June.
inance Minister Purbaya Yudhi Sadewa has asserted that, despite calls from several regional administrations to disburse outstanding revenue-sharing funds (DBH), a component of regional transfers, amid concerns over limited cash availability, the central government would release additional funds selectively.
Purbaya declined to disclose the amount of additional transfers that would be provided, as the government was still verifying which regions were facing actual cash shortages before deciding on any disbursements.
He said the government did not want a repeat of a previous incident in which some regions claimed a funding shortfall even as the transferred money sat idle in bank accounts.
“We are checking which regions actually do not have money. We are looking at how much money they have in the banks and whether it is being used,” Purbaya told a press conference on Tuesday.
Any additional funding would require approval from President Prabowo Subianto as well as coordination with the Home Ministry, he added.
Transfers to regional administrations fell 11.2 percent year-on-year (yoy) to Rp 357.4 trillion (US$20 billion) as of June 30, from Rp 402.5 trillion a year earlier.
Read also: Indonesia posts first trade deficit in six years
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