Home Affairs Minister Reveals Need for Rp 14 Trillion Injection to Address Fiscal Issues in 79 Regions

Home Affairs Minister Tito Karnavian has revealed that an estimated budget of Rp 14 trillion is needed to address fiscal problems in 79 regions. This budget includes covering the shortfall in personnel expenditure.

"There are regions where efficiency measures have been implemented, we have examined them and it is not enough. There is no Revenue Sharing Fund (DBH) or there is DBH but it is insufficient to pay personnel costs. There is no other way; this must be topped up by the Ministry of Finance. And we calculate that at least 79 regions are affected," Tito told reporters at the Bakom RI Office in Central Jakarta on Wednesday (5/8/2026).

Tito disclosed that the shortfall for personnel expenditure alone is still Rp 3.5 trillion. However, when combined with other needs, the total shortfall reaches approximately Rp 14 trillion.

"So, for the personnel expenditure of those 79 regions, if I am not mistaken, it is almost Rp 3.5 trillion. When added to other requirements to strengthen them, it is roughly around Rp 14 trillion. But according to the Finance Minister’s data, his calculation is nearly Rp 20 trillion," he continued.

Tito stressed that his ministry is currently formulating a scheme to resolve this issue. There are two schemes under consideration: increasing the Transfer to Regions Fund (TKD) budget and the payment of DBH to regional governments.

"Regarding the TKD, I have submitted a proposal to the Finance Minister, Purbaya Yudhi Sadewa. But this will be discussed at the government level, under the authority of the President, the President’s discretion, and Bappenas. After that, it may also be discussed with the DPR," he stated.

For the second scheme involving DBH payments to regional governments, Tito noted that the total underpaid DBH from the central government to regional administrations reached Rp 70 trillion in 2024. He requested that DBH be prioritised for regions experiencing fiscal difficulties.

"For DBH, I have proposed to the Finance Minister that, if possible, the underpaid DBH be paid to regions whose personnel expenditure is already under strain. That is the super priority, depending on the state’s financial capacity, which the Finance Minister understands," he said.

"So, there is approximately Rp 70 trillion in total underpayments. It does not have to be all of it. But in certain regions facing fiscal shortfalls that have DBH yet to be paid by the central government, those are the priority. We submitted the data to the Finance Minister on Monday," Tito concluded.