Kutai Kartanegara District Government secures Rp820 billion credit facility for third-party payments
The Kutai Kartanegara District Government (Pemkab Kukar) in East Kalimantan has established a financing partnership with Bankaltimtara (the Regional Development Bank of East Kalimantan and North Kalimantan) to address regional cash flow requirements totalling Rp820 billion.
This strategic measure was implemented to ensure that payment obligations to third parties and 2025 development project contractors can be promptly fulfilled.
The loan agreement was formalised through a credit facility signing by Kutai Kartanegara Regent Aulia Rahman Basri and Bankaltimtara Managing Director Muhamad Yamin at the bank’s meeting room in Tenggarong, East Kalimantan, on Friday.
This regional loan serves as a concrete solution for the district government to address liquidity pressure resulting from project payment obligations.
With the release of these funds, the process of settling accounts with contractors and business partners who have completed their work can be accelerated before the Eid holiday period.
Regent Aulia Rahman Basri expressed his appreciation to Bankaltimtara for conducting the administrative process according to schedule.
He emphasised that this partnership was crucial for the economic stability of the region’s business partners.
“We greatly appreciate Bankaltimtara for preparing everything so that this agreement could be implemented promptly. Our target is clear: payments to third parties must be completed before the Eid holiday so they can meet their obligations to their employees,” Aulia stated.
The realisation of this loan is the result of inter-agency coordination involving relevant Regional Government Organisations (OPD) and has received approval from the Directorate General of Regional Finance Development of the Ministry of Home Affairs (Kemendagri) and support from the Kutai Kartanegara Regional Legislative Assembly.
Following the agreement signing, Pemkab Kukar immediately processed subsequent administrative steps, including the issuance of Payment Instruction Letters (SPM) and Fund Release Instruction Letters (SP2D). Thousands of SP2D documents are now being prepared to enable the funds to be transferred directly to contractor accounts.
“We are completing the administrative process today to facilitate the fund disbursement as quickly as possible,” he stressed.
In addition to obligations to business partners, Pemkab Kukar also ensures that the rights of State Civil Apparatus (ASN) are fulfilled. Payments of Employee Income Supplements (TPP) and Holiday Allowances (THR) for civil servants and contract employees are guaranteed to be disbursed according to regulations to maintain the welfare of civil servants before the religious holiday.
This regional loan policy is a legitimate financial instrument under regulations, provided it is used for public service interests and fiscal stability.
Through this mechanism, Pemkab Kukar can manage cash flow more flexibly without disrupting the continuity of ongoing development projects in the 2026 fiscal year.