Distressing: Only 8 Provinces in Indonesia are Not Dependent on Central Government

The Minister of Home Affairs, Tito Karnavian, has revealed that only 20 provinces, or 53% of Indonesia’s provinces, possess strong fiscal conditions. This fiscal strength is characterised by minimal dependence on Regional Transfer Funds (TKD) due to substantial Regional Original Income (PAD).

Furthermore, 8 provinces (21%) possess moderate fiscal strength, while 10 provinces (26%) are recorded as having weak fiscal positions. “(Weak fiscal strength) means they are highly dependent on TKD. It is slightly better at the provincial level, with 38 provinces having either strong or moderate fiscal positions,” Tito stated during a working meeting with Commission II on Monday (8/6/2026).

According to Tito, the situation is even more severe at the regency level. Only 8 regencies possess strong fiscal strength, where their PAD exceeds the TKD. Meanwhile, 7 regencies have moderate fiscal capacity, while 496 regencies are still dependent on TKD or possess weak fiscal strength. “This means the PAD and TKD are almost similar. Whereas the 496 regencies are dominated by TKD,” Tito noted.

At the city level, Tito stated that only 15 out of 93 cities in Indonesia have strong fiscal strength, while 19 cities have moderate strength, and the remaining 59 cities are classified as weak. “From this, it can be seen that the heaviest problem lies at the regency level,” he explained.