{
    "success": true,
    "data": {
        "id": 1836538,
        "msgid": "bontang-mayor-neni-moerniaeni-on-tkd-cuts-all-cities-are-anxious-1782986285",
        "date": "2026-07-02 15:01:00",
        "title": "Bontang Mayor Neni Moerniaeni on TKD Cuts: All Cities Are Anxious",
        "author": "",
        "source": "TEMPO_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "Bontang Mayor Neni Moerniaeni has voiced concerns that the reduction in Transfer ke Daerah (TKD) funds is causing widespread anxiety among Indonesia's city governments, hampering their ability to execute development programmes. She highlighted that Bontang's budget shrank from Rp 3 trillion to Rp 1.7 trillion, forcing difficult fiscal adjustments. However, she noted that advocacy has led to a relaxation allowing personnel spending to exceed the 30 per cent cap, while collaboration with the central government has secured free gas network installations for 11,500 households.",
        "content": "<p>Bontang Mayor Neni Moerniaeni has responded to questions about the\nkey issues being brought forward for joint recommendations at the 18th\nNational Working Meeting of the Association of Indonesian City\nGovernments (Rakernas APEKSI) in Medan. According to her, sustainable\ndevelopment, waste management, and fiscal pressure are relevant topics\nto raise.<\/p>\n<p>According to the official, who is familiarly called Bunda, nearly all\nof the 98 member cities of APEKSI face the same challenges. These\ninclude a reduction in Transfer ke Daerah (TKD) funds, which makes\nprogrammes outlined in the Regional Medium-Term Development Plan (RPJMD)\ndifficult to implement. For example, Bontang\u2019s Regional Original Income\n(PAD) is very low because it is a new city, thus it experiences fiscal\npressure.<\/p>\n<p>\u201cBontang\u2019s budget fell from Rp 3 trillion to Rp 1.7 trillion,\u201d Neni\nsaid in the Grand City Hall Ballroom in Medan on Wednesday, 1 July 2026.\n\u201cMeanwhile, the government must still spend on personnel. The Law on\nCentral and Regional Financial Relations (UU HKPD) stipulates that\npersonnel spending must not exceed 30 per cent, yet our right to\nrevenue-sharing funds as a producing region of 1 per cent under the HKPD\nis ignored.\u201d<\/p>\n<p>\u201cThe cry from the heart when we want to develop, then fiscal pressure\nnarrows the space because of the TKD reduction. Many programmes\nultimately cannot be implemented; almost everyone voices the same\nconcern,\u201d she said. \u201cAlhamdulillah, we previously met with the Minister\nof Home Affairs through Commission III of the DPR, and we received\nleeway so that personnel spending may exceed 30 per cent.\u201d<\/p>\n<p>This relaxation will be incorporated into the 2027 State Budget Law\n(UU APBN). The APBN Law agrees on a state revenue target of 12.4 per\ncent of Gross Domestic Product (GDP) with a budget deficit set in the\nrange of 1.8 to 2.4 per cent. This policy is focused on strengthening\ndownstream processing and creating 3.49 million new jobs.<\/p>\n<p>\u201cBecause if the HKPD Law must be implemented on 1 January 2027, even\nif bureaucratic spending exceeds 30 per cent, all cities share the same\nanxiety when TKD is reduced; they cannot run their programmes,\u201d Neni\nsaid with a smile.<\/p>\n<p>Following the relaxation, the Bontang City Government continues to\ncollaborate with programmes run by the provincial and central\ngovernments. They are synergising and innovating as outlined in the\nRPJMD to maintain the welfare of employees and the public. Neni gave an\nexample of how to improve public welfare: children with disabilities\nreceive assistance of Rp 300,000 per month. Likewise, impoverished\nwidows and the elderly can at least buy rice. The salaries of Quranic\nteachers have been raised to Rp 2 million, as have those of private\nschool teachers.<\/p>\n<p>\u201cThis is not an honorarium. This is assistance from the Bontang City\nGovernment using a by-name, by-address mechanism directly into each\nteacher\u2019s account,\u201d Neni said. Consequently, private school teachers and\nQuranic teachers receive Rp 2 million per month, including Sunday school\nteachers, priests, and pastors. \u201cSo, this spending has become larger. It\nwas originally calculated to be sufficient, so we maintain it. What we\ncut is spending on goods and services.\u201d<\/p>\n<p>Regarding infrastructure programmes potentially affected by the TKD\nreduction, Neni is grateful that the construction of the gas network\n(jargas) continues and is free for 11,500 households. \u201cIf we used the\nAPBD budget, it would cost hundreds of billions. We received nearly\n11,500 free installations. Bontang is a city with LNG; it shouldn\u2019t be\ndifficult to find gas, right?\u201d she said. \u201cAlhamdulillah, the Minister of\nEnergy and Mineral Resources provided free jargas. Only one of the 15\nurban villages remains uncovered.\u201d<\/p>\n<p>Neni explained that the existence of the gas network in Bontang\ngreatly facilitates community activities. \u201cThe efficiency is\nextraordinary,\u201d she said. For example, a meatball soup vendor who\npreviously spent up to Rp 6 million a month on gas now spends only\naround Rp 300,000.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bontang-mayor-neni-moerniaeni-on-tkd-cuts-all-cities-are-anxious-1782986285",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}