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View all search resultsRecentralization concerns in fiscal, education heighten
A move to reduce regional transfers and a proposal to centralize teacher recruitment by the central government are defended as an effort to curb corruption and prevent local political interference, according to President Prabowo Subianto.
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President Prabowo Subianto (center) presides over a limited cabinet meeting on Sept. 1 with several cabinet ministers on his administration's housing program at his private residence in Hambalang, Bogor regency, West Java. (Courtesy of Presidential Secretariat/Laily Rachev)
P
resident Prabowo Subianto’s latest remarks on regional budgets and teachers’ recruitment has raised concern about power recentralization that would further erode regional autonomy in Indonesia.
During Prabowo’s recent sit-down with several senior journalists at his private residence in Hambalang, Bogor regency, West Java, he addressed concerns about reductions in regional transfers as the government is imposing austerity measures to prioritize state budget for the President’s flagship programs.
For this year’s state budget, regional transfers fell to Rp 693 trillion (US$48 billion), down about 20 percent from the Rp 869 trillion allocated in 2025.
When asked about the cut, Prabowo blamed some regions for “not using the money” to build or repair infrastructure such as school buildings and bridges.
He further blamed Indonesia’s “rapid decentralization” that has given local administrations greater authority, while alleging several regional heads had misused funds transferred by Jakarta.
“Because of this [decentralization] over the past two decades, many local administrations did not use the budgets they were supposed to use. They were even cut or siphoned off, which led to their schools falling into disrepair,” Prabowo said.
As an attempt to improve education quality, the President also said the government has been deliberating a plan to return the authority to recruit teachers to the central government as part of a “sweeping overhaul”.
