Prabowo Reveals Many Local Governments Are Not Utilising Budgets Optimally
President Prabowo Subianto has highlighted that the management of local government budgets is not yet operating optimally. He revealed that there are still funds that have been transferred to the regions but are not being used to their full potential, particularly in supporting development and public services.
He stated that the central government must ensure every part of the state budget is used effectively to provide direct benefits to the community. This has become a key consideration in the policy regarding Regional Transfer (TKD) management.
He cited examples where local government budgets are instead being kept in banks or remain unused due to issues at the regional level. “Sometimes it is strange; money by local governments is not used. We have evidence. It is placed in banks, or there are various issues. Or there is conflict between a Regent and the Regional House of Representatives (DPR), or between a Governor and the DPR. So, the money has been transferred, but it is not used,” Prabowo said during the ‘President Answers’ programme on Wednesday, 16 September 2026.
Prabowo believes this condition requires special attention, as the purpose of transferring budgets to the regions is to accelerate development and improve public welfare. While local governments have the authority to manage budgets according to regional needs and priorities, their usage must remain effective and accountable.
Prabowo also highlighted that the development of basic infrastructure at the village level is deemed disproportionate to the budget allocated to the regions. “Decentralisation has been running for how long? 25 years, right? We have lowered funds to every village—one billion [rupiah]—over the last 10 years. Regional transfers have been made. Why are village bridges never built? Even though a bridge only costs Rp400 million,” he explained.
Prabowo questioned the effectiveness of the budget utilisation that the central government has distributed to the regions, asking, “Where is that money going?”
He emphasised that budget policies must be oriented towards results and benefits that are felt by the community. The central government must also ensure that every rupiah allocated through the State Budget (APBN) or transferred to the regions truly results in the development and public services required by the people.