Ministry of Finance Distributes 40 Per Cent Additional Regional Transfer Funds to Disaster-Affected Provinces

Jakarta — The Ministry of Finance has completed the distribution of the first phase of additional Regional Transfer Funds (TKD) amounting to 40 per cent of the total IDR 10.65 trillion allocation to three provinces in Sumatra affected by disasters at the end of 2025.

“The total additional amount is IDR 10.65 trillion. We are distributing this total through three phases under our governance framework. Phase I (worth) 40 per cent (of the total additional funds) has already been distributed at IDR 4.39 trillion,” said Deputy Minister of Finance Suahasil Nazara in Jakarta on Wednesday (11 March).

He stated that the distribution of additional TKD Phase II is scheduled for March 2026, whilst Phase III distribution will take place in April, each amounting to 30 per cent.

Regarding the overall TKD distribution, which comprises the initial allocation plus additional funds, he stated that 24 Local Governments (Pemda) in Aceh Province have received IDR 7.17 trillion, or 25.1 per cent of the total IDR 28.59 trillion.

Meanwhile, the distribution to 34 Pemda in North Sumatra has reached 26.2 per cent, or IDR 10.74 trillion out of the total allocation of IDR 41.05 trillion, and 20 Pemda in West Sumatra have already received IDR 5.27 trillion, or 26.9 per cent of the allocation of IDR 19.63 trillion.

Thus, the realisation of TKD distribution by 28 February for the three disaster-affected provinces in Sumatra has reached IDR 23.18 trillion, or 28 per cent of the total allocation, which is higher than the national average.

Meanwhile, Suahasil stated that the total distribution of TKD for all local governments in Indonesia until the end of February 2026 has reached IDR 147.7 trillion, or 21.3 per cent of the budget ceiling in the 2026 State Budget of IDR 693 trillion. This realisation increased by 8.1 per cent year-on-year.

“(TKD realisation) is largely used to support payment of salaries for regional civil servants and School Operational Assistance (BOS),” he said.

He stated that the benefits of TKD are felt by 43.2 million students through BOS, 5.8 million early childhood education students through Early Childhood Education Operational Assistance (BOP PAUD), 992,000 students through equivalency programmes, and 616,000 teachers through work allowances.

“These are all public services delivered by local governments,” said Suahasil Nazara.