Accumulated Funds of Regional Governments to Decrease Further in 2026, Interior Ministry Reveals Reasons

The Director General of Regional Financial Development at the Ministry of Home Affairs (Kemendagri), Agus Fatoni, has revealed that the accumulated funds of regional governments will decrease this year. The reason is the increasing monthly expenditure realisations throughout the fiscal year 2026. “The accumulated funds will naturally decrease further. Actually, these funds are just sitting idle because they haven’t been used yet,” he said when met at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Monday (11/5/2026). According to Agus Fatoni, the Ministry of Home Affairs continues to encourage higher APBD realisations until the end of the year, targeting 20% in the first quarter, 50% in the second quarter, 80% in the third quarter, and 100% in the fourth quarter. “Per quarter, if possible, 20% in the first quarter, 50% in the second, 80% in the third, and approaching 100% in the fourth—this is getting better,” he emphasised. Based on the Regional Financial Information System (SIKD), regional revenue realisation reached Rp225.69 trillion or 19.01% of the 2026 budget. Meanwhile, regional expenditure realisation reached Rp215.33 trillion or 17.22% of the total budget. These realisations have increased compared to the previous month, with revenue at 16.32% and expenditure at 12.63%. This provides a new picture that regional government cash surpluses will still occur this year. Previously, the phenomenon of accumulated regional government funds in banks was highlighted by the central government because those budgets are intended for economic development in the regions, so they need to be realised accurately and promptly. Last year, the value of regional government funds accumulated in banks was recorded at Rp315.57 trillion as of the end of September 2025, according to Bank Indonesia records.