Ensuring Regional Government Public Service Functions Continue Amid Budget Constraints

The primary duties and functions (tupoksi) of all regional governments (pemda) should not be allowed to grind to a halt for any reason, including financial or budgetary limitations. The functions of all provincial and regency governments must be ensured to maintain a positive perception of the nation-state in the eyes of the public and the international community. Therefore, fiscal authorities are urged to immediately find a way out of the budget crisis currently enveloping many regional governments. Currently, the public is faced with the fact that 490 out of a total of 552 regional governments across Indonesia are experiencing budget constraints. These limitations mean many regional governments are struggling to pay the salaries of their local civil service apparatus. This fact should be interpreted as a potentially very serious problem. It must not be oversimplified. If left to drag on, some regional government functions, especially public services, could become paralysed because some local government employees cannot work as they should. The paralysis of public service functions provided by regional governments has the potential to cause disturbances to public order in each respective area. When public order is disrupted in many regions because public services are not functioning effectively, a negative perception of the state’s governance, stability, and security will quickly form in the public mind. Such a negative perception will cause multidimensional excesses, ranging from discomfort in communal dynamics, reluctance and doubt in initiating productive activities, to eroding the region’s attractiveness as an investment destination. All elements of society agree that a spirit and culture of efficiency must be inherent in government organisations and management, both central and regional. Everyone also agrees and supports the elimination of deviant or corrupt behaviour in budget utilisation. Therefore, the public supports the government when it implements efficiency policies and measures. Amid complaints about the misuse of village funds and rampant corruption in several provinces and regencies, the policy of adjusting fund allocations from the central government to the regions was a relevant initial step as a shock therapy. Through this shock therapy, all regional governments are expected to learn from their mistakes. They are also encouraged to prioritise wisdom, prudence, and accurate targeting in managing and utilising their budgets. However, after this adjustment to central-to-regional transfer funds has been running for almost two years, many regions are now facing a number of problems. Besides the potential inability to pay the salaries of local government apparatus, some regional governments are also unable to repair damaged public infrastructure in their areas, such as roads, bridges, and even school buildings. This potential problem must not be simplified; it must be accepted as a fact that requires a solution. Oversimplifying this issue will lead to various excesses that could disrupt public order. In this context, special attention must be directed to several regional governments whose infrastructure has been severely damaged by natural disasters such as landslides and flash floods. The memory is still fresh of when three provinces in Sumatra—Aceh, North Sumatra, and West Sumatra—were hit by natural disasters in November 2025. The disaster devastated residential areas and damaged various public infrastructure in the affected regions. For the reconstruction and rehabilitation of the disaster areas in Sumatra, the government allocated a budget of Rp100.1 trillion to carry out more than 11,500 priority programmes for infrastructure development, public facilities, and the restoration of residential areas. This reconstruction and rehabilitation process certainly requires the support and work of all local civil service apparatus, primarily to maintain public order and security, as well as efforts to restore damaged regional assets. Meanwhile, the budget constraints currently experienced by several regional governments have also given rise to an interesting phenomenon, as it tells a story of community self-reliance. As reported by various media outlets, residents have been pooling their own money and resources to repair damaged roads and bridges. This community self-reliance is a response to the local government’s budget limitations. For instance, to avoid isolation due to infrastructure damage, residents of Bener Meriah, Aceh, collected over Rp1 billion to repair roads and bridges. In Bengkulu, residents agreed to initiate a ‘Gerakan Mandiri’ (Self-Reliance Movement) to repair roads and build emergency bamboo bridges. Residents in several regencies in Central Java have done the same. In the regencies of Brebes, Grobogan, and Pekalongan, residents have worked together and used their own funds to repair severely damaged roads and bridges. Besides pooling money, residents worked together to complete all the tasks. They provided building materials such as cement, sand, and gravel. The concreting and patching of roads were carried out jointly by the local residents. This community initiative and self-reliance aimed to prevent accidents caused by potholes and nearly collapsed bridges. It also aimed to prevent disruptions to the distribution of agricultural products and the mobility of residents. While communities strive for self-reliance, several regional governments are actively seeking to overcome budget constraints, not only by collecting taxes but also by expanding the tax base. It is a fact that the policy of expanding the tax base often triggers public protests because it is implemented at a time when the socio-economic reality of the community is not in good shape. Fortunately, the Minister of Finance has announced that the 490 regions facing budget constraints have the potential to receive additional funds from the central government. The disbursement is still awaiting direction from the President.