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View all search resultsDPD demands higher regional transfers in 2027 state budget
Newly-appointed Finance Minister Suahasil Nazara expressed appreciation for the proposal and said that DPD proposals would be a key topic in upcoming discussions with lawmakers on the 2027 state budget draft.
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Against poverty: A resident repairs a water pipe on Oct.17, 2025, in Sama Jaya village, Konawe, Southeast Sulawesi. The Health Ministry has intended to give people greater access to basic health care service facilities and to increase the development of clean water and sanitation infrastructure (Antara/Jojon)
T
he Regional Representatives Council (DPD) has urged the government and lawmakers to increase regional transfers (TKD) earmarked in the 2027 state budget draft, as the share of the budget allocated from the central government to regions continues to shrink amid rising financing needs.
In an extraordinary plenary meeting on Wednesday, the council proposed lifting the TKD from Rp 735 trillion (US$41.49 billion) to Rp 780.22 trillion.
Ahmad Nawardi, DPD head of committee IV, said during the meeting that the additional Rp 45.22 trillion was still within the government’s targeted TKD spending range of 2.55-2.79 percent of gross domestic product (GDP), which was eventually set at 2.63 percent of GDP in the state budget draft for 2027.
Next year's Rp 735 trillion budget has actually increased by 6 percent from this year’s allocation of Rp 693 trillion. However, Ahmad noted that the rise had yet to return to previous levels seen before it declined over the past two years.
In the 2025 state budget, which was drafted under former president Joko “Jokowi” Widodo’s administration, the government earmarked Rp 919.9 trillion for transfers to regions, around 20 percent more than the amount budgeted for next year.
DPD also highlighted that the dwindling regional budget could affect local administrations capacity to finance infrastructure development.
“The spending cut makes infrastructure spending currently at its lowest level in the past two decades. As a result, the target of regional revenue [PAD] has surged from Rp 264 trillion in 2020 to Rp 429 trillion in 2026,” Ahmad said.
