Deputy Home Affairs Minister Says Central Transfer Funds Remain Crucial for Regions

Deputy Home Affairs Minister Akhmad Wiyagus has acknowledged that central government transfer funds to the regions remain important for regional budget (APBD) fiscal health. He made the statement in his opening speech at the second ADPSI National Working Meeting in Sanur, Denpasar, Bali, on Monday (29/6/2026).

Akhmad presented data from the Directorate General of Fiscal Balance at the Ministry of Finance showing that the national APBD posture for 2026 records regional revenue of approximately Rp 1,167 trillion. “Of that figure, regional own-source revenue (PAD) is around Rp 429 trillion, while central transfers (TKDD) are around Rp 699 trillion. This means the space for regional fiscal independence needs to be continuously strengthened,” Akhmad said.

“At the same time, central transfers remain an important instrument in maintaining equitable public services across all regions of Indonesia,” he continued. Akhmad detailed that the 2026 Transfer to Regions (TKD) figure is Rp 640 trillion, with realisation at around Rp 293 trillion, or 45 percent.

“Within that, there are revenue-sharing funds of Rp 60.27 trillion, which are of significant concern for regions, particularly natural resource-producing areas,” Akhmad stated. He said these figures send a clear message that strong regional autonomy requires strong fiscal governance. “Furthermore, regional independence should not only be interpreted as increasing revenue, but also as the ability to plan, allocate, spend, and oversee the APBD with quality,” Akhmad concluded.