Purbaya Plans to Increase Regional Transfers by Up to Rp90 Trillion in 2027
Jakarta (ANTARA) - Minister of Finance Purbaya Yudhi Sadewa plans to increase the budget for regional transfers (TKD) by up to Rp90 trillion in the 2027 fiscal year.
Purbaya, during a meeting with the Regional Representative Council (DPD) in Jakarta on Monday, said the government is currently preparing additional fiscal space of around Rp40 trillion, with the potential for further increases.
He stated that the increase would be adjusted according to the State Budget (APBN) conditions while maintaining fiscal discipline.
“There is room for the regions. There will definitely be an increase. The most important thing is how fiscal strengthening for the regions is carried out carefully without disrupting the government’s commitment to maintaining a prudent deficit,” Purbaya said.
He explained that the strategy for strengthening regional fiscal capacity is focused on three main aspects: optimising regional revenue, improving the quality of regional spending, and developing creative and innovative financing sources.
These measures are expected to enhance the regions’ capacity to finance development and create new economic growth centres.
One instrument being promoted by the government is the use of regional development financing through PT Sarana Multi Infrastruktur.
Through this scheme, regional governments can access financing with relatively low interest rates to build strategic infrastructure such as schools, hospitals, drinking water supply systems, and regional roads.
“Regions can still build despite budget constraints. There are financing sources available with relatively low interest rates and long tenors, so regional development can continue,” he added.
In addition to strengthening regional fiscal capacity, the government is also continuing to refine the Central and Regional Financial Relations framework, including the digitalisation of TKD, strengthening central-regional fiscal synergy, and preparing regional Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF).
These steps are intended to ensure that regional development policies become more effective, accountable, and capable of delivering tangible impacts on public welfare.