Additional Regional Transfer Budget for 2026 Awaits President Prabowo's Approval

Finance Minister Purbaya Yudhi Sadewa has prepared an additional transfer to regions (TKD) allocation in the 2026 state budget to support regional governments’ cash flows.

However, the exact value of the additional TKD, he admitted, must first receive direct approval from President Prabowo Subianto.

“We now have a certain figure, but we cannot announce it yet because I need permission from the President and to communicate with the Ministry of Home Affairs,” said Purbaya at his office, quoted on Wednesday (22 July 2026).

Purbaya acknowledged he had also heard of fiscal problems faced by regional governments due to declining TKD budgets. However, he stressed that the central government must first examine in detail the financial condition of each regional government.

“We are indeed checking which regions claim they have no money. We will look at how much money they have in the bank and whether it is being used,” Purbaya asserted.

The plan to add to the TKD was previously also conveyed by Deputy Finance Minister Suahasil Nazara during a working meeting with Commission XI of the House of Representatives on 15 July 2026. However, he signalled that the additional funds would be selective, although he did not detail the size of the increase.

“We are mapping one by one which regions are genuinely facing cash difficulties, and we do have plans for an addition. This is still in process, but we hope it can reduce the difficulties, though it will be more selective,” he explained.

During a working meeting with the House Budget Committee on 7 July 2026, Purbaya had in fact revealed the potential for an additional TKD budget ceiling of Rp13.3 trillion. This would bring the TKD ceiling to Rp706.3 trillion, up from Rp693 trillion.

At the time, Purbaya said the additional TKD budget included funds for disaster response in Sumatra, additional Papua special autonomy allocations, and additional special infrastructure data.

Even with the increase, the TKD budget ceiling would still be lower than the Rp919.9 trillion prepared in 2025. Nevertheless, Purbaya considers the rise to Rp706.3 trillion sufficiently significant.