DBH Slashed by Rp15 Trillion, Jakarta Provincial Government Relies on Creative Financing

Deputy Coordinator of Special Staff for Jakarta, Yustinus Prastowo, said he did not want to rely on the Dana Bagi Hasil (DBH) to channel financing to Badan Usaha Milik Daerah (BUMD) and aimed to rely on local revenues. This is inseparable from the DBH cut for Jakarta amounting to Rp15 trillion in 2026. Yustinus said the Jakarta provincial government is trying to boost revenue through investments and other income. ‘So we are now pushing for creative financing. How the financing will not rely on the sharing fund, but could be through investments or loans and so on,’ he told journalists at Taman Ismail Marzuki, Friday (6 March 2026). He understands that the DBH cut means certain portions of local expenditure must be trimmed as a form of adjustment. However, he said, the DBH reduction is not intended to affect public services. Nevertheless, Yustinus said the Jakarta provincial government is optimising the use of funds outside the APBD to channel into various public infrastructures. ‘What is important is that essential public needs are not reduced, that is the hope. And going forward, non-APBD funding is indeed what we are trying to optimise, including land-use and other things,’ he said. On the same occasion, the President Director of PT Jakarta Propertindo (PT Jakpro) Iwan Takwin said they are developing a strategy for independent use of funds without burdening the APBD. ‘Jakpro is then required to think about how our corporate strategies can be implemented so as not to burden the APBD again. But what is the priority program of the Jakarta Provincial Government, what is the governor’s direction, we can realise it with measurable accelerations,’ he explained. Iwan emphasised that Jakpro is seeking to join the global community to explore opportunities to generate income, including by attracting investors to collaborate on several projects. ‘That will become a doorway later so that Jakpro can more easily or flexibly attract investors to come to Jakarta and collaborate with us to realise Jakarta programs, realise public facilities and infrastructure that are truly needed and then further position Jakarta as a global city,’ he said.