Home Affairs Minister: Regions Must Implement Efficiency Before Receiving Additional TKD

JAKARTA (ANTARA) – Home Affairs Minister Tito Karnavian has asserted that the government will undertake a series of steps before granting additional Regional Transfers (TKD) to regional governments struggling to pay personnel expenditure.

He said the Ministry of Home Affairs has identified at least 79 regions that may require additional funds. However, he stressed that the government will not simply approve additional funding without first evaluating each region’s financial condition.

“We will dispatch a team to check whether efficiency measures have been carried out. Efficiency first,” Tito said at the Government Communication Agency (Bakom) building in Jakarta on Wednesday.

According to him, the first step is to ask regional governments to make budget efficiencies, particularly by cutting non-priority spending such as official travel, meetings, and other operational costs.

Tito cited the example of a region in East Nusa Tenggara (NTT) that claimed difficulties paying staff salaries, but upon evaluation by the Ministry of Home Affairs was found to still have considerable inefficient expenditure.

After savings were made, the region’s budget was deemed sufficient to meet its salary payment obligations.

He also commended the Lahat Regency Government in South Sumatra, which took the initiative to cut operational support spending and saved around Rp400 billion.

“I ask that this (efficiency) be carried out first — don’t just suddenly ask for additional General Allocation Funds (DAU). Do the efficiency first and we will send a team,” he said.

The second step, Tito continued, is for the government to check whether the region still has entitlements to Revenue Sharing Funds (DBH) not yet disbursed by the Ministry of Finance.

If such funds exist, the Ministry of Home Affairs will coordinate with the Ministry of Finance so that the funds can be paid promptly and used to finance personnel expenditure.

However, if efficiency measures and DBH disbursement remain insufficient to cover personnel spending, only then will the government consider providing a TKD top-up from the Ministry of Finance.

Tito estimated that around 79 regions fall into this category.

He explained that this figure differs from the data cited by the Finance Minister, which mentioned some 490 regions. According to Tito, the figure of 490 refers to regions with DBH funds still unpaid, not regions struggling to cover personnel expenditure.

“The 490 are those whose DBH has not been paid. So they are not the ones who cannot pay — for those who cannot pay personnel expenditure, we have identified at least 79 regions,” Tito said.

Regarding budget needs, Tito said the additional funds required to cover personnel expenditure in the 79 regions are estimated at around Rp3.5 trillion to Rp3.7 trillion.

Meanwhile, if other fiscal needs are included, the additional transfer value is estimated to approach Rp14 trillion.