DPR Budget Committee Confirms Regional Transfer Funds Will Increase in 2027

The House of Representatives’ Budget Committee (Banggar DPR) has guaranteed that the Regional Transfer Fund (TKD) in the state budget (APBN) will increase in 2027. However, Banggar DPR Chairman Said Abdullah stated that the exact figure is not yet known. He added that this will be announced directly by President Prabowo Subianto during the annual MPR general session on 16 August. “My calculation, compared to 2026, the TKD will certainly increase from the Rp649 trillion allocated in 2026,” Said remarked at the parliamentary complex in Jakarta on Monday (6/7). “The exact figure will of course be conveyed by the President in the Financial Note on 16 August,” Said continued. The TKD is a portion of the APBN distributed to regional governments to fund governance and public services. Referring to the Law on Central and Regional Financial Relations, the TKD is divided into six types: Revenue Sharing Fund (DBH), General Allocation Fund (DAU), Special Allocation Fund (DAK), Special Autonomy Fund, Privilege Fund, and Village Fund. Said explained that, based on discussions on fiscal principles within the Budget Committee, the TKD amount ranges from 2.55 to 2.79 per cent of gross domestic product (GDP). Based on the current GDP of Rp28,831 trillion, the government intends to increase the TKD. “The government has a desire to increase it. However, the programme will be benchmarked from the central to the regional level, so there is a shared vision with the President,” Said stated.