Jakarta Deputy Governor Rano Karno presented the Governor\u2019s response\nspeech on the General Policy of the Revised Regional Budget for Fiscal\nYear 2026 at the DPRD DKI Jakarta Plenary Session on Monday (31\/8\/2026).\nThe speech covered Regional Revenue Policy, Regional Expenditure Policy,\nand Regional Financing Policy.<\/p>\n
For Regional Revenue Policy, Rano explained that it includes Regional\nTaxes and Levies, Separated Regional Wealth Management Results, Other\nLegitimate Regional Original Revenue (LLPAD), and Transfer Revenue.<\/p>\n
Regarding the Regional Tax and Levy Policy implemented by the\nExecutive, Rano said it includes the implementation of Regional\nRegulation Number 1 of 2024 on Regional Taxes and Levies in accordance\nwith Law Number 1 of 2022 on Financial Relations between the Central\nGovernment and Regional Governments, as well as Government Regulation\nNumber 35 of 2023 on Regional Taxes and Levies.<\/p>\n
\u201cThe preparation of these implementing regulations is to provide\nlegal certainty, improve services, and enhance the governance of\nregional taxes and levies,\u201d said Rano.<\/p>\n
Concerning efforts to improve the achievement of Separated Regional\nWealth Management Results, Rano explained that the executive is taking\nseveral steps, including strengthening the financial performance and\nasset utilisation of BUMDs, accelerating digital transformation and\nservice innovation, and strengthening synergy among BUMDs with the DKI\nJakarta Provincial Government in supporting the regional development\nagenda.<\/p>\n
To improve the performance of Legitimate LLPAD, Rano said efforts are\nbeing made by exploring revenue potential, identifying problems in the\nrevenue collection process, and evaluating and reconciling LLPAD\nrevenue.<\/p>\n
Meanwhile, the general policy is focused on optimising the management\nof transfer revenue, which Rano outlined through various efforts such as\nsubmitting reports on the requirements for TKD distribution, aligning\nregional government work plans with the central government, and\ncoordinating intensively with the Central Government so that TKD\nmanagement complies with established provisions.<\/p>\n
\u201cRegarding the General Policy on Legitimate LLPAD, it is focused\nthrough coordination on the distribution of grants carried out by the\nCentral Government,\u201d said Rano.<\/p>\n
Regarding the Regional Expenditure Policy, Rano explained that it is\nin accordance with the Memorandum of Agreement between the Provincial\nGovernment and the DPRD of DKI Jakarta Province on the Changes to the\nGeneral Policy of the APBD and the Changes to the Priorities and\nTemporary Budget Ceilings of the 2026 APBD.<\/p>\n
\u201cRegional Expenditure is intended to pay attention to the priorities\nset in the Regional Medium-Term Development Plan and the Strategic Plans\nof Regional Apparatuses, as well as to support the achievement of Asta\nCita and national economic growth,\u201d he explained.<\/p>\n
It also involves reviewing and prioritising the sustainability of\nQuickwins programmes, achieving the global city status, and\nstrengthening Jakarta\u2019s fundamentals. Furthermore, it provides budget\nallocations to sectors that directly affect the public interest,\nincluding mandatory affairs related to basic services, guided by the\nMinimum Service Standards (SPM) in accordance with applicable laws and\nregulations.<\/p>\n
Next, it ensures productive spending allocations by prioritising core\nexpenditure over supporting expenditure and encouraging creative,\ninnovative, and collaborative financing, especially in implementing\npriority activities.<\/p>\n
\u201cThe Executive also ensures mandatory and binding expenditure,\naccording to essential minimum needs,\u201d Rano asserted.<\/p>\n
Then, it carries out efficiency and re-examination of expenditure\nprogramme activities by taking into account the achievement of regional\ndevelopment priority targets while still considering regional financial\ncapacity. It also provides assistance in the form of subsidy\nexpenditure, grant expenditure, social assistance expenditure, and\nfinancial assistance expenditure.<\/p>\n
Rano also explained the regional financing policy, which is prepared\nas a response to the dynamics of financing needs and fiscal projection\nadjustments that occur during the implementation of the 2026 APBD.<\/p>\n
The financing revenue policy, Rano revealed, consists of financing\nrevenue from the 2025 Budget Surplus (SiLPA). Then, Regional Debt\nFinancing revenue from the Central Government for the MRT Jakarta\nproject development activities and Regional Loan Financing revenue from\nfinancial institutions for multi-year activities.<\/p>\n
Meanwhile, the regional financing expenditure policy consists of\nregional capital participation or investment and payment of principal\ndebt instalments that are due.<\/p>\n
According to Rano, the financing expenditure policy is used for\nRegional Capital Participation in BUMDs, the implementation of which is\nbased on applicable laws and regulations, as well as for the payment of\nprincipal debt for JEDI loans, MRT Jakarta Phase 1 loans, and loans to\nPT Sarana Multi Infrastruktur (Persero) for the National Economic\nRecovery (PEN) Programme.<\/p>\n
In the final section, Rano explained the details of the Draft\nRegional Regulation on the Revised Regional Budget for Fiscal Year 2026.\nHe stated that the total Revised APBD 2026 is Rp 79.59 trillion, a\ndecrease of 2.13% compared to the 2026 Regional Budget of Rp 81.32\ntrillion.<\/p>\n
Regional Revenue in the Revised APBD 2026 is planned at Rp 69.36\ntrillion, a decrease of 2.93% compared to the 2026 APBD of Rp 71.45\ntrillion.<\/p>\n
\u201cRegional Revenue is expected to come from Regional Original Revenue\nof Rp 57.87 trillion, Transfer Revenue of Rp 11.28 trillion, and Other\nLegitimate Regional Revenue of Rp 207.39 billion,\u201d he said.<\/p>\n
Rano expects Regional Original Revenue to be obtained from Regional\nTaxes of Rp 49.89 trillion, Regional Levies of Rp 2.22 trillion,\nSeparated Regional Wealth Management Results of Rp 719.04 billion, and\nOther Legitimate Regional Original Revenue of Rp 5.02 trillion.<\/p>\n
Meanwhile, Transfer Revenue is expected to reach Rp 11.28 trillion\noriginating from Central Government transfers. Furthermore, Other\nLegitimate Regional Revenue is expected to be Rp 207.39 billion\noriginating from Grant Revenue.<\/p>\n
Rano said that Regional Expenditure in the Revised APBD 2026 is\nplanned at Rp 75.08 trillion, an increase of 1.08% compared to the 2026\nAPBD of Rp 74.28 trillion.<\/p>\n
\u201cThe Regional Expenditure plan consists of Operating Expenditure,\nCapital Expenditure, Unforeseen Expenditure, and Transfer Expenditure,\u201d\nRano explained.<\/p>\n
Regarding regional financing, Rano explained that financing revenue\nin the Revised APBD for fiscal year 2026 is planned at Rp 10.24\ntrillion, originating from the previous year\u2019s SiLPA projected at Rp\n5.82 trillion, loan repayment receipts of Rp 28.30 million, and Regional\nDebt Financing revenue of Rp 4.41 trillion.<\/p>\n
\u201cFinancing Expenditure is planned at Rp 4.51 trillion, allocated to\nRegional-Owned Enterprises in the form of Regional Capital Participation\nof Rp 2.67 trillion and Payment of Principal Debt Instalments Due of Rp\n1.84 trillion,\u201d he concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jakartas-2026-revised-budget-rano-karno-pushes-creative-financing-and-priorities-1788166306", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }