Regional Transfer Budget Could Rise to Rp 90 Trillion, Purbaya Reveals Considerations

Finance Minister Purbaya Yudhi Sadewa has raised the possibility of increasing the allocation for Regional Transfers (TKD) in the 2027 State Budget (APBN) by up to Rp 90 trillion. Speaking after a working meeting with the Regional Representative Council (DPD), Purbaya said the increase would depend on the outcomes of future discussions on the matter. “Currently, there is a provisional increase of around Rp 40 trillion for the regions, but the range could rise to Rp 90 trillion. It depends on how the APBN discussions unfold. So that space is open,” Purbaya said on Monday. He added that the matter would also require the approval of President Prabowo Subianto, noting that the President has been quite flexible regarding budget adjustments. Purbaya further explained that the government must still strive to keep the 2027 APBN deficit below 3 per cent, meaning the implementation of the TKD increase must take this constraint into account. This is particularly important as the Indonesian government is currently under the spotlight of several international institutions regarding its fiscal and financial management. “We must not let the deficit exceed 3 per cent, because we are being watched by global institutions to see whether we can implement prudent policies or not. If we are not prudent, they will punish us. So I am very careful about that,” he said.