Revenue-Sharing Funds Not Yet Disbursed, Dedi Mulyadi Revises West Java 2026 Budget Deficit

West Java Governor Dedi Mulyadi has corrected the initial projection of a potential deficit in the West Java Regional Budget (APBD) for 2026, which had reached Rp5.7 trillion. Following reconciliation, the potential deficit for the 2026 West Java APBD is now smaller, at Rp3.4 trillion.

Dedi revealed that the potential deficit was caused by several factors, one of which is the revenue-sharing tax funds owed by the central government to the West Java Provincial Government, which have remained unpaid from 2023 through to 2026.

Another factor is this year’s unmet cigarette excise target. In addition, electric vehicles are not subject to motor vehicle tax.

“In the end, the deficit of Rp5.7 trillion could be pressed down to Rp3.4 trillion,” Dedi said in a statement on Tuesday (15/9/2026).

Dedi added that the deficit was also driven by the implementation of development on a massive scale, reaching even the remotest corners of West Java.

The potential deficit of Rp3.4 trillion will be addressed by applying for a loan from PT Sarana Multi Infrastruktur (SMI), a financial management company under the Ministry of Finance. The debt will be repaid using revenue-sharing funds from the central government.

“We will apply for a loan from PT SMI, and the repayment will be made by the Ministry of Finance because we have outstanding receivables,” he explained.

Dedi disclosed that the plan to apply for the loan is still at the consideration stage, as the West Java Provincial Government’s financial capacity must first be assessed. If the province’s cash position remains sufficient, the loan may not be taken out at all.