Bontang Mayor Neni Moerniaeni on TKD Cuts: All Cities Are Anxious
Bontang Mayor Neni Moerniaeni has responded to questions about the key issues being brought forward for joint recommendations at the 18th National Working Meeting of the Association of Indonesian City Governments (Rakernas APEKSI) in Medan. According to her, sustainable development, waste management, and fiscal pressure are relevant topics to raise.
According to the official, who is familiarly called Bunda, nearly all of the 98 member cities of APEKSI face the same challenges. These include a reduction in Transfer ke Daerah (TKD) funds, which makes programmes outlined in the Regional Medium-Term Development Plan (RPJMD) difficult to implement. For example, Bontang’s Regional Original Income (PAD) is very low because it is a new city, thus it experiences fiscal pressure.
“Bontang’s budget fell from Rp 3 trillion to Rp 1.7 trillion,” Neni said in the Grand City Hall Ballroom in Medan on Wednesday, 1 July 2026. “Meanwhile, the government must still spend on personnel. The Law on Central and Regional Financial Relations (UU HKPD) stipulates that personnel spending must not exceed 30 per cent, yet our right to revenue-sharing funds as a producing region of 1 per cent under the HKPD is ignored.”
“The cry from the heart when we want to develop, then fiscal pressure narrows the space because of the TKD reduction. Many programmes ultimately cannot be implemented; almost everyone voices the same concern,” she said. “Alhamdulillah, we previously met with the Minister of Home Affairs through Commission III of the DPR, and we received leeway so that personnel spending may exceed 30 per cent.”
This relaxation will be incorporated into the 2027 State Budget Law (UU APBN). The APBN Law agrees on a state revenue target of 12.4 per cent of Gross Domestic Product (GDP) with a budget deficit set in the range of 1.8 to 2.4 per cent. This policy is focused on strengthening downstream processing and creating 3.49 million new jobs.
“Because if the HKPD Law must be implemented on 1 January 2027, even if bureaucratic spending exceeds 30 per cent, all cities share the same anxiety when TKD is reduced; they cannot run their programmes,” Neni said with a smile.
Following the relaxation, the Bontang City Government continues to collaborate with programmes run by the provincial and central governments. They are synergising and innovating as outlined in the RPJMD to maintain the welfare of employees and the public. Neni gave an example of how to improve public welfare: children with disabilities receive assistance of Rp 300,000 per month. Likewise, impoverished widows and the elderly can at least buy rice. The salaries of Quranic teachers have been raised to Rp 2 million, as have those of private school teachers.
“This is not an honorarium. This is assistance from the Bontang City Government using a by-name, by-address mechanism directly into each teacher’s account,” Neni said. Consequently, private school teachers and Quranic teachers receive Rp 2 million per month, including Sunday school teachers, priests, and pastors. “So, this spending has become larger. It was originally calculated to be sufficient, so we maintain it. What we cut is spending on goods and services.”
Regarding infrastructure programmes potentially affected by the TKD reduction, Neni is grateful that the construction of the gas network (jargas) continues and is free for 11,500 households. “If we used the APBD budget, it would cost hundreds of billions. We received nearly 11,500 free installations. Bontang is a city with LNG; it shouldn’t be difficult to find gas, right?” she said. “Alhamdulillah, the Minister of Energy and Mineral Resources provided free jargas. Only one of the 15 urban villages remains uncovered.”
Neni explained that the existence of the gas network in Bontang greatly facilitates community activities. “The efficiency is extraordinary,” she said. For example, a meatball soup vendor who previously spent up to Rp 6 million a month on gas now spends only around Rp 300,000.