Adkasi Pushes for Increased Oil and Gas Revenue Sharing for Producing Regions in 2027

The Association of Indonesian Regional People’s Representative Councils (Adkasi) is urging the central government to increase the Oil and Gas Revenue Sharing (DBH Migas) funds for producing regions in the 2027 fiscal year to strengthen regional fiscal capacity in supporting development. Adkasi Chairman Siswanto stated that the association, together with the Association of Provincial Governments of Indonesia (APPSI), is advocating for increased regional transfers, particularly the DBH Migas component. ‘We, together with APPSI, are fighting for next year’s regional transfer funds, especially the DBH Migas item,’ he said when contacted in Blora Regency, Central Java, on Wednesday. Siswanto, who also serves as Deputy Chairman of the Blora Regency DPRD, noted that oil and gas producing regions require adequate fiscal support as they still rely on transfer funds from the central government to finance development and public services. He revealed that the DBH Migas received by Blora Regency for the 2026 fiscal year has been cut by approximately 70 percent, from around Rp132 billion to approximately Rp45 billion. To date, only about Rp25 billion has been transferred by the central government. ‘Our DBH Migas this year has been cut by about 70 percent. From around Rp132 billion, now only about Rp45 billion remains. Even so, only about Rp25 billion has been transferred so far,’ he said. Siswanto explained that the decline in DBH Migas has impacted the region’s financial capacity. Furthermore, the Blora Regency Government is also facing a reduction in general transfer funds of around Rp362 billion. He mentioned that the Blora Regency Government’s operational expenditure reaches approximately Rp1.5 trillion, while the total regional budget (APBD) is around Rp2.2 trillion, leaving increasingly limited fiscal space for development. According to him, increasing the DBH Migas for producing regions will strengthen the regional government’s ability to finance development, drive the economy, and improve public welfare. ‘If the goal is regional development, returning regional transfer funds is important. Because if everything is controlled by the central government, regions will struggle to innovate,’ Siswanto concluded.