Dedi Mulyadi Reveals Cause of West Java's IDR 5.9 Trillion Budget Deficit
West Java Governor Dedi Mulyadi has given an official clarification regarding the condition of the West Java Regional Budget (APBD), which is experiencing a deficit of Rp5.9 trillion. Dedi affirmed that this significant deficit figure is not caused by wasteful budget management or misallocated spending by the West Java Provincial Government.
According to Dedi, the main cause of this fiscal imbalance is the delayed disbursement of Revenue Sharing Funds (DBH) from the central government. He explained that the West Java Provincial Government remains committed to carrying out various strategic projects according to plan, but this has not been matched by a smooth cash flow from the centre.
Dedi revealed that the central government still has outstanding DBH payment obligations for the 2023 and 2024 fiscal years totalling Rp1.2 trillion. Although these obligations have a clear legal basis through Minister of Finance Regulations (PMK), their realisation on the ground continues to face obstacles.
“When the funds flow, they flow. But the question is whether the disbursement complies with the Finance Minister’s regulation? That is the problem,” said Dedi in Bandung on Wednesday (15/7).
The situation is exacerbated by uncertainty over DBH obligations for the coming years, namely 2025 and 2026, which have yet to receive any further decisions. This raises concerns about the potential for the deficit to balloon in the future.
Despite facing financial pressure, Dedi assured that priority programmes serving the public interest continue to run. Vital sectors such as education (school construction), road infrastructure and irrigation continue to be implemented according to the established planning schedule.
He denied allegations that the deficit occurred because of budget diversion to unproductive sectors. “So the Rp5.9 trillion deficit does not mean the money was used for other things by the provincial government, no. The West Java Provincial Government today is building according to plan. What is not running is the money coming in,” Dedi asserted.
Dedi Mulyadi hopes the central government will soon realise the outstanding DBH claim of Rp1.2 trillion. If the fund transfer is not made promptly, he predicts West Java’s fiscal condition will come under even greater pressure, as regional revenue assumptions depend heavily on the timely disbursement of funds from the centre.