Finance Minister Purbaya Awaits Prabowo's Directive on Additional Funds for 490 Regions

Finance Minister Purbaya Yudhi Sadewa has stated that additional funds will be provided to 490 regions deemed to have insufficient budgets for civil servant (ASN) expenditure. However, he stressed that this disbursement requires approval from President Prabowo Subianto. “Possibly all 490 regions will receive additional funds. But that depends on the direction from the President later,” Purbaya explained at the LPS Office on Tuesday (28/7/2026).

Minister of Home Affairs Tito Karnavian, during a meeting with Purbaya on Monday, revealed that several strategies are being prepared to ensure regional ASN can continue working and receive their entitlements. The primary strategy is for regional governments to implement budget efficiency measures or increase locally-generated revenue (PAD). “I have stated that there should be no option to lay off or not pay employees, so I have asked the regions to implement efficiency first,” Tito said.

Tito added that if a regional government has implemented efficiency and increased PAD but the budget remains insufficient, the next option is to utilise the revenue-sharing funds (DBH) disbursed by the Ministry of Finance through the Directorate General of Fiscal Balance. “For regions where PAD is very difficult, but they have DBH at the Ministry of Finance, we request the Minister of Finance to pay out the DBH to help the region cover its employee expenditure,” Tito explained.