The Speaker of the MPR RI, Bambang Soesatyo (Bamsoet), has\nhighlighted the impact of the central government\u2019s policy to adjust\nRegional Transfer Funds (TKD). This budget reduction measure is assessed\nto be creating heavy pressure on regional operational continuity.<\/p>\n
The Member of the House of Representatives (DPR RI) revealed the\nreality of the difficulties currently faced by regional apparatuses.\nFinancial pressure has left hundreds of regencies and cities struggling\nto manage their cash flows.<\/p>\n
\u201cThe adjustment of Regional Transfer Funds (TKcal) from the central\ngovernment has had a real impact or excess for hundreds of local\ngovernments (Pemda),\u201d Bamsoat wrote in a written statement on Friday\n(18\/09\/2026).<\/p>\n
The shrinking budget situation is also sacrificing various public\nservice programmes. Many regions have been forced to postpone several\ndevelopment projects while struggling to meet the financial entitlements\nof employees.<\/p>\n
\u201cNot only is it difficult to pay employee salaries, but many local\ngovernments are also finding it hard to build or repair regional\ninfrastructure. Dozens of local governments have even been forced to\nseek loans to overcome development budget limitations,\u201d he\nexplained.<\/p>\n
Bamsoet understands the central government\u2019s move to lock certain\nfund flows as a form of shock therapy. Throughout 2026 alone, dozens of\nregional heads have been caught in sting operations by law enforcement\nagencies.<\/p>\n
\u201cAmid the prevalence of corruption cases by officials at the regional\nlevel, the TKD adjustment policy from the centre can be accepted and\nsupported by various elements of society. Between 2004 and 2025, as many\nas 201 regional heads were involved in corruption cases,\u201d Bamsoet\nclarified.<\/p>\n
While the policy aims for good discipline, the budget cuts are deemed\nto still need to consider the continuity of government operations. Local\ngovernments essentially require a safe fiscal space to ensure that\npublic services do not stall.<\/p>\n
\u201cIdeally, the adjustment of TKD from the centre should not cause\nexcess or problems for the regions,\u201d he emphasised.<\/p>\n
The effect of these cuts has prompted the Provincial Government of\nDKI Jakarta to finalise plans for issuing regional bonds. Jakarta\u2019s TKD\nallocation for 2026 has been drastically cut to 16 trillion Rupiah.<\/p>\n
A similar situation is experienced by North Maluku, which has been\nforced to propose a regional loan of 1 trillion Rupiah. According to\nrecent records, 94 local governments have applied for financing loans\nfrom PT Sarana Multi Infrastruktur (SMI).<\/p>\n
\u201cThe pattern or mechanism of local government debt repayment to SMI\nusing Revenue Sharing Funds (DBH) or TKD reductions tends to continue\nweakening local government finances. Building new infrastructure or\nrepairing existing infrastructure is a continuous need,\u201d said\nBamsoet.<\/p>\n
The lack of funds for repairing public facilities has ultimately\ntriggered initiatives from citizens in various regions to take direct\naction. Community groups in Aceh, Bengkulu, and Central Java have been\nforced to self-fund to repair damaged roads.<\/p>\n
\u201cIf the manifestation of the excess is like that, it may be because\nthe scale of the TKD adjustment is too extreme and the calculation was\ninaccurate,\u201d he said.<\/p>\n
The senior political figure urged the central government to review\nthe percentage of regional transfer cuts. More accurate calculations are\ncrucial to ensure that public facilities in border areas are not\nneglected.<\/p>\n
\u201cThat is an example of the excess of a TKD adjustment scale that is\ntoo extreme with inaccurate calculations,\u201d Bamsoet concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bamsoet-criticises-tkd-adjustments-calling-the-scale-too-extreme-1789736378", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }