Indonesian Political, Business & Finance News

Finance Ministry Disburses Rp306 Trillion to Regions for Civil Servant and Teacher Salaries

| Source: CNBC Translated from Indonesian | Economy
Finance Ministry Disburses Rp306 Trillion to Regions for Civil Servant and Teacher Salaries
Image: CNBC

The Ministry of Finance, under Minister Purbaya Yudhi Sadewa, is intensifying efforts to accelerate the distribution of Regional Transfer funds (TKD). Director General of Fiscal Balance Askolani stated that as of the end of May 2026, total realised transfers, including special disaster-related funds, reached Rp306.11 trillion, or 43.5% of the total ceiling of Rp703.64 trillion. “As of 31 May 2026, we have realised 43.5% of the ceiling of approximately Rp703.6 trillion set in the state budget,” Askolani said during a presentation at a House of Representatives Budget Committee meeting on Tuesday (23/6/2026). The disbursement realisation is significantly higher than the figure for May 2025, recording a growth of 37%. “The realisation of TKD in May 2026 is much better than May 2025 in terms of absorption percentage. This is then used to support regional development activities,” he explained. The funds are primarily aimed at strengthening public services in the regions, including salaries for 4.3 million regional civil servants (ASND), salaries for 616,000 teachers, operational assistance for 5.8 million early childhood education (PAUD) students, school operational assistance (BOS) for 42.3 million students, and an equivalency programme for 992,000 students. The distribution was driven by components such as the Revenue Sharing Fund (DBH), General Allocation Fund (DAU), Non-Physical Special Allocation Fund (DAK), and Special Autonomy Fund (Otsus), including relaxations and additional allocations for regions affected by flash floods and landslides in Sumatra. “The spirit is to encourage spending acceleration, so our support to regional governments is truly tangible,” Askolani stated. In detail, the largest realisation was recorded for the 2026 DAU, reaching 49.1% or Rp192.48 trillion as of May. This was followed by DAK at 43.2% or Rp67.83 trillion, and the Special Autonomy Fund at 42.4% or Rp5.91 trillion.

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