South Kalimantan Provincial Budget Reduced by Rp2.1 Trillion as Government Targets Corporate Social Responsibility Funds
The Provincial Government of South Kalimantan will optimise the utilisation of Corporate Social Responsibility (CSR) funds from companies operating in the region to cover a provincial budget reduction of Rp2.1 trillion resulting from central government budget efficiency measures.
Central government transfer funds to South Kalimantan have been reduced by nearly 50%, declining from approximately Rp4.5 trillion to Rp2.2 trillion in 2026. This is linked to the central government’s budget efficiency policy. The reduction in transfers to regions (TKD) has also affected 13 municipalities/cities in South Kalimantan, with the highest decline experienced by Tanah Bumbu Regency at approximately 49%.
Suprapti Tri Astuti, Head of the Regional Development Planning Agency (Bappeda) of South Kalimantan Province, stated during a CSR special committee meeting with the South Kalimantan Regional Representative Council several weeks ago that the province is working to bridge the substantial budget shortfall of Rp2.1 trillion by engaging various companies from strategic sectors, such as coal mining and palm oil plantations.
Corporate CSR funds will be directed to support development across various fields. “Thus far, corporate CSR distribution has tended to be limited to communities in the vicinity of company operations. Going forward, we want CSR to be utilised more broadly for development across South Kalimantan,” Suprapti stated.
South Kalimantan provincial government is currently developing an integrated CSR management system through a digital application. The system will contain various regional development needs, classified by sector clusters.
“With this system, companies can directly select programmes they wish to support based on their business sectors. All programmes will be transparent and open,” Suprapti said.
The programmes include various sectors such as infrastructure development, healthcare, stunting mitigation, community welfare, and poverty eradication.
Suprapti further explained that South Kalimantan provincial government will draft a regional regulation as a legal framework for CSR management to ensure CSR utilisation is more targeted and equitable. The province is coordinating with the Coordinating Ministry of Economic Affairs, the Ministry of Energy and Mineral Resources, the Ministry of Agriculture, and others.
The utilisation of CSR funds for development received support from the South Kalimantan Regional Representative Council. Separately, Joko Subagyo, Social Engagement Manager of Astra Agro Lestari, welcomed on Tuesday (10/3) the plan to utilise CSR funds including from the plantation sector for regional development.
“We welcome this positively, provided the regulations are clear. Fundamentally, CSR funds are intended for development, as an expression of corporate responsibility for social, economic, and environmental impacts whilst improving the welfare of surrounding communities,” Joko stated in Banjarmasin.