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

Finance Minister Purbaya Yudhi Sadewa has prepared an additional regional transfer budget (TKD) in the 2026 State Budget to support local government cash flows. However, he stated that the exact value of the increase requires direct approval from President Prabowo Subianto. “We currently have a certain figure but cannot announce it yet because I need permission from the President and communication with the Ministry of Home Affairs,” Purbaya said at his office, as quoted on Wednesday (22/7/2026). Purbaya acknowledged hearing about fiscal problems in regional governments due to declining TKD allocations. He stressed that the central government must first examine the cash conditions of each regional government in detail. “We are checking which regions genuinely have no money. We will look at their bank balances and whether the funds are being utilised,” he asserted. The plan for additional TKD was previously mentioned by Deputy Finance Minister Suahasil Nazara during a working meeting with House Commission XI on 15 July 2026. He signalled that the increase would be selective, though he did not elaborate on the details. “We are mapping out one by one which regions are truly experiencing cash difficulties, and we do have a plan for an increase. This is still in process, but we hope it can alleviate the existing difficulties, albeit more selectively,” he explained. During a working meeting with the House Budget Committee on 7 July 2026, Purbaya had already revealed a potential increase in the TKD ceiling of Rp 13.3 trillion. This would bring the total ceiling to Rp 706.3 trillion, up from Rp 693 trillion. He noted that the additional TKD budget includes funds for disaster management in Sumatra, additional special autonomy funds for Papua, and additional data for special infrastructure. Despite the increase, the TKD ceiling remains significantly lower than the 2025 allocation of Rp 919.9 trillion. However, Purbaya considered the rise to Rp 706.3 trillion to be quite significant.