Regional Transfer Budget Set at Rp735 Trillion for 2027, Up 5.5%

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has confirmed that the administration of President Prabowo Subianto has decided to increase the regional transfer budget (TKD) in 2027.

He said that, in nominal terms, the planned TKD budget for 2027 is Rp735 trillion, equivalent to 17% of the total planned state expenditure for 2027 of Rp4,097.2 trillion.

Purbaya said this figure is also higher than the ceiling prepared for 2026 of Rp696.9 trillion.

“For 2027, it is planned at Rp735 trillion, an increase of 5.5% compared with the 2026 outlook of Rp696.9 trillion,” Purbaya said during a press conference on the Financial Note and 2027 State Budget Draft (RAPBN) on Friday (14/8/2026).

Purbaya said the planned TKD budget in the 2027 RAPBN excludes disaster reconstruction funds prepared for regions affected by natural disasters.

“So that is separate. This one is for TKD, and we will also continue to monitor the financial condition of each region from month to month, as we did previously,” Purbaya said.

“If necessary, we will add more, as we did before. That is our approach,” he stressed.