{
    "success": true,
    "data": {
        "id": 1861099,
        "msgid": "central-java-hopes-for-no-further-cuts-to-regional-transfer-funds-in-2027-1784109307",
        "date": "2026-07-15 16:04:40",
        "title": "Central Java Hopes for No Further Cuts to Regional Transfer Funds in 2027",
        "author": "Mas Alamil Huda",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Economy",
        "summary": "The Central Java provincial government is urging the central government not to cut the General Allocation Fund (TKD) in 2027, as districts and cities in the region rely on transfers for an average of 85 percent of their income. The province's BPKAD head noted that the 2026 TKD cuts of over IDR 11 trillion have severely pressured local budgets, with personnel spending already exceeding the 30 percent legal limit due to the high number of teachers. He has asked local administrations to reassess their actual staffing needs to manage fiscal constraints.",
        "content": "<p>The Central Java Provincial Government is hoping that the central\ngovernment will not again cut the Regional Transfer Fund (TKD) in 2027,\nas the majority of districts and cities in the region are heavily\ndependent on these transfers. Dwianto Priyonugroho, Head of the Regional\nFinancial and Asset Management Agency (BPKAD) of Central Java Province,\nstated that cumulatively, the TKD cuts for local governments in Central\nJava in 2026 reached more than IDR 11 trillion. The cut experienced by\nthe Central Java Provincial Government alone amounted to IDR 1.5\ntrillion, with the remainder spread across 35 districts and cities.<\/p>\n<p>Dwianto explained that, on average, 85 percent of district and city\ngovernment income relies on central and provincial transfer funds.\nFurthermore, he noted that average personnel expenditure budgets in\nthese local governments already exceed 30 percent, with some approaching\n40 percent. This is despite Law Number 1 of 2022 on Financial Relations\nbetween the Central Government and Regional Governments, which\nstipulates a maximum personnel expenditure of 30 percent of the Regional\nBudget (APBD).<\/p>\n<p>However, Dwianto stressed that exceeding this limit cannot simply be\nlabelled as waste, as it is largely driven by the need to meet minimum\nservice standards in education, which requires a large number of\nteachers. He clarified that the majority of personnel spending above 30\npercent in districts and cities is allocated for educators, including\nthe salaries of Government Employees with Work Agreements (PPPK) at the\nelementary and junior high school levels, which are borne by the local\ngovernment budget. He therefore expressed hope that TKD allocations\nwould not be cut in 2027 and could even increase compared to 2026. When\nasked about the possibility of reducing PPPK numbers if local fiscal\ncapacity is inadequate, Dwianto said it depends on needs, as minimum\nservice standards must still be met, and he urged all local governments\nto re-identify their actual personnel requirements across all agencies,\nincluding schools.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/central-java-hopes-for-no-further-cuts-to-regional-transfer-funds-in-2027-1784109307",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}