Government to disburse Rp20.5 trillion in central assistance to regions

Finance Minister Purbaya Yudhi Sadewa has announced that the government will disburse Rp20.5 trillion in central government assistance to regional administrations by next week at the latest to maintain local fiscal stability. Purbaya stressed that the aid is not an additional General Allocation Transfer (TKD), but rather central government support prepared based on the specific needs of each region. “It is not TKD. It is central government assistance to ensure regional financial conditions are more stable,” Purbaya said during a media briefing in Jakarta on Wednesday. He stated that the disbursement process now only requires the completion of administrative procedures and is targeted to begin by next week at the latest. According to Purbaya, the amount of assistance for each region is calculated based on their respective fiscal conditions, including the funding shortfalls they face. He expressed hope that the assistance would ease the financial pressures on regional governments, including for the payment of salaries. In the same briefing, Acting Director General of Fiscal Balance Nufransa Wira Sakti explained that the central government assistance would be provided after calculating the gap between the Regional Revenue and Expenditure Budget (APBD) and the actual spending needs in several regions. He noted that the aid is primarily aimed at ensuring regional governments can pay the salaries of regional civil servants and government employees with work agreements (PPPK), both full-time and part-time. “We have calculated that several regional governments have a gap between their APBD and its realisation, as well as their needs, especially for paying the salaries of regional civil servants and PPPK. That difference is what we are covering in the form of central government assistance to regional governments,” Nufransa said. He mentioned that the assistance will be distributed to 497 regional governments, with amounts adjusted to their respective fiscal conditions. “It is hoped that the 497 regions can meet their needs so that there will be no layoffs of PPPK employees,” he added.