House Commission XI to Oversee 2027 Regional Transfer Formula to Ensure It Benefits Regions

Chairman of Commission XI of the Indonesian House of Representatives (DPR), Mukhamad Misbakhun, has affirmed that his commission will oversee the discussion of the 2027 Regional Transfer (TKD) budget to ensure the formula remains fair, rational, and aligned with regional development needs. Speaking in Jakarta on Friday, Misbakhun stated that the final amount for the 2027 TKD has not yet been determined, as it awaits the drafting of the Financial Note and the 2027 Draft State Revenue and Expenditure Budget (RAPBN) to be submitted by the government to the DPR. Consequently, he noted that figures currently circulating in the public domain cannot yet be used as a reference for a final decision. ‘We understand the aspirations and concerns of regional governments. Therefore, Commission XI will oversee the TKD 2027 deliberation process to ensure the formula remains fair, rational, and favours regional development needs,’ Misbakhun said. He cited the example of the TKD allocation in the 2026 State Budget, which was set at Rp693 trillion after receiving an additional Rp43 trillion from the government’s initial proposal. This experience, according to him, demonstrates that regional aspirations are taken into consideration in the formulation of national fiscal policy. ‘The government understands regional aspirations. We in the DPR also continue to push for regional governments to have adequate fiscal space, especially for basic services, infrastructure development, and strengthening local economies,’ he stated. Furthermore, Misbakhun assessed that the state budget’s alignment with regional interests is not solely reflected in the size of a single budget item. He argued that benefits can be channelled through Regional Transfers as well as central government spending, as long as the outcomes are directly felt by the public.