Indonesian Political, Business & Finance News

Puteri Komarudin Pushes for Strengthening Regional Transfer Policies

| Source: CNN_ID Translated from Indonesian | Economy
Puteri Komarudin Pushes for Strengthening Regional Transfer Policies
Image: CNN_ID

House Budget Committee member Puteri Komarudin is pushing for the strengthening of Regional Transfer (TKD) policies to maintain the sustainability of regional development. This follows the realisation of TKD reaching Rp306.1 trillion by the end of May 2026, as recorded by the Ministry of Finance. This realisation is equivalent to 44.17 per cent of the total 2026 TKD, which amounts to Rp693 trillion.

"We continue to fight for regional aspirations so that the TKD ceiling continues to increase. For example, this year, the TKD ceiling could reach Rp693 trillion. Previously, during the State Budget discussions, the ceiling was only around Rp649.99 trillion. This means there is an increase of approximately Rp43 trillion," Puteri said in a written statement on Friday (26/6). She stated that this reflects the House of Representatives’ commitment to listening to regional aspirations to ensure the continuity of regional development.

The Rp306.1 trillion realisation has been used to support various regional activities, including the payment of salaries for 4.3 million civil servants, allowances for 616,000 teachers, the distribution of School Operational Assistance (BOS) for 42.3 million students, and Early Childhood Education Operational Assistance for 5.8 million students. Puteri noted that there is still room for improvement in the realisation rate, especially considering its benefits in optimising public services.

"This includes supporting regional employee salaries and educational operations. Therefore, we encourage the government to accelerate the distribution of TKD so that various regional development programmes can run smoothly according to plan, while also supporting economic activity in the regions," she said. The Ministry of Finance has issued Minister of Finance Regulation Number 35 of 2026 concerning the Management of Revenue Sharing Funds and General Allocation Funds last May. Puteri assessed that this regulation can support the acceleration of TKD distribution.

"The goal is certainly good, to accelerate local government cash flow and reduce various funding constraints that often occur at the beginning of the fiscal year. We hope the implementation of this regulation runs well, so that local governments have more optimal space to carry out development programmes and public services," she said. Puteri also welcomed the joint discussions with the government regarding the determination of the TKD ratio for 2027. Based on the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for 2027, the government is targeting a TKD ratio in the range of 2.55 per cent to 2.79 per cent of Gross Domestic Product (GDP).

"With this range, the government estimates the indicative TKD ceiling for 2027 to be between Rp710 trillion and Rp810 trillion. However, this is still an initial projection and the final calculation will be submitted by the government during the Financial Note later. We will certainly be careful in formulating the TKD policy design so that the formula remains fair, rational, and aligned with regional development needs," Puteri said.

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