Papua Governor prepares transformative measures to restore regional finances

Jayapura (ANTARA) – Papua Governor Matius D. Fakhiri has prepared transformative measures to restore the region’s fiscal capacity by increasing locally generated revenue (PAD), optimising assets and reorganising regional-owned enterprises (BUMD).

“At this point, we have chosen not to complain, but to row together. The only course of action must be transformative: transforming mindsets, regulations and strategic approaches to development,” Fakhiri said in Jayapura on Wednesday.

Matius said regional finances were facing challenges after Papua Province’s revenue fell significantly as a result of territorial divisions.

Regional revenue, which had previously reached Rp11.4 trillion, fell to Rp3.73 trillion in 2023 and is projected to stand at just Rp1.8 trillion in the 2026 fiscal year.

He explained that the situation had restricted fiscal space for funding education, healthcare and economic services, while the wage bill exceeded what could be covered by the budget allocations from the General Allocation Fund (DAU) and PAD.

“Dependence on central government transfers remains high, while PAD has not grown as expected. We are therefore continuing to optimise available revenue sources to maintain the sustainability of development,” he said.

He added that the province would make better use of regional assets and strengthen the governance of BUMDs so they could pay larger dividends. BUMDs should drive the people’s economy, he said, rather than become a burden on the regional budget (APBD).

“Alongside increasing revenue, we are also maintaining discipline and accountability in regional financial management. This is reflected in the Unqualified Opinion (WTP) issued by the Audit Board of Indonesia (BPK RI) on the 2025 Regional Government Financial Statements (LKPD),” he said.