In DPR, Rudy Mas'ud Expresses Concern Over 30% Cut in East Kalimantan's Regional Transfer Funds

The Governor of East Kalimantan, Rudy Mas’ud, has complained that the Regional Transfer Funds (TKD) from the central government are set to be slashed by 30 per cent for the 2026 fiscal year. Rudy stated that this reduction would impact civil servant expenditures and the quality of public services.

Rudy Mas’ud shared these concerns during a working meeting with Commission II of the House of Representatives (DPR RI) in Senayan, Jakarta, on Monday (8/6/2026). He noted that East Kalimantan’s current TKD stands at Rp 52.83 trillion. He highlighted that while the previous year’s transfer value reached Rp 78.04 trillion, the current allocation has dropped significantly.

“Regarding East Kalimantan, out of the 10 regencies and cities in the province, seven have expenditures exceeding 30 per cent. The regional budgets (APBD) of East Kalimantan’s regencies and cities are remarkably large,” Rudy said during the meeting. He emphasised that the 30 per cent reduction in TKD is a direct blow to the province’s financial planning.

Rudy Mas’ud argued that the amount of TKD provided by the central government heavily influences civil servant salaries and public services. He urged the government to reconsider the allocation amount, noting that TKD is vital for meeting mandatory spending requirements in education, infrastructure, public services, and civil servant training.

He pointed out that as of June 2026, the funds received by East Kalimantan only represent approximately 30 per cent of the total allocation, whereas an ideal mid-year figure should be between 45 and 50 per cent. “This results in regional spending and activities being somewhat disrupted, while we, as regional heads, are required to accelerate the spending of regional budgets to ensure funds do not remain stagnant in regional coffers,” he added.

Furthermore, Rudy raised issues with the Minister of PAN-RB regarding the status of Government Employees with Work Agreements (PPPK). He noted a lack of regulation concerning competency enhancement for PPPK, which has led some doctors to resign while pursuing specialist training because contract rules prohibit leaving their duties. He also highlighted the absence of regulations regarding internal transfers for PPPK staff.

Finally, Rudy expressed concern over the fiscal burden placed on local governments to cover the salaries and allowances of PPPK. “The fiscal burden of PPPK salaries is increasing. The capacity for regional spending is becoming heavier due to the obligation of local governments to independently bear the cost of PPPK salaries and allowances amidst the policy of reducing regional transfer fund allocations,” he concluded.