Government Allocates Rp 18.9 Trillion to Regional Administrations, Lawmaker Urges 2027 TKD Evaluation

Member of House Commission II Muhammad Khozin supports the central government’s move to allocate an additional Rp 18.9 trillion to 546 regional governments to help meet personnel expenditure needs.

The additional funds come from underpayments of Revenue Sharing Funds (DBH) and additional General Allocation Funds (DAU). Khozin also urged improvements in regional financial governance so that similar fiscal problems do not recur.

“We welcome the central government’s commitment to responding to issues in the regions. This is in line with the agreement between House Commission II and the Government some time ago,” Khozin said in a written statement on Tuesday (11/8/2026).

According to Khozin, besides meeting personnel expenditure needs, the remaining funds are expected to support improvements in public services and urgent regional development.

He added that the fiscal problems experienced by a number of regional governments, to the point of disrupting salary payments for employees, including Government Employees with Work Agreements (PPPK), must become a shared evaluation. Moreover, some regions have even been forced to reduce or eliminate incentives for employees.

“The situation occurring in the regions must serve as a stark reminder for stakeholders to improve financial governance between the central and regional governments, particularly regarding the Regional Transfer (TKD) instrument in the 2027 budget,” said the National Awakening Party (PKB) faction politician.

Khozin cautioned that the additional Rp 18.9 trillion may not necessarily be sufficient to cover all personnel expenditure needs while also financing regional development. Therefore, he argued, an evaluation of the TKD scheme is necessary so that decentralisation policy runs in balance with regional fiscal capacity.

“Transferring authority without transferring finance to the regions results only in pseudo authority,” the PKB faction politician asserted.

On the other hand, Khozin encouraged regional governments to strengthen their fiscal capacity by optimising available revenue potential in accordance with regulations. This can be achieved through budget efficiency, innovation in revenue sources, and increasing locally generated revenue (PAD).

“Regions must strive as hard as possible to increase PAD. Inter-regional cooperation, including sharing knowledge and strategies, must also be carried out more frequently,” he concluded.