Video: Central Sulawesi Boosts Local Revenue via Mining and Durian Exports to China

Jakarta, CNBC Indonesia - The Prabowo administration continues its budget efficiency policy, including cuts to Regional Transfer Fund (TKD) allocations intended to support government priority programs. Governor of Central Sulawesi, Anwar Hafid, said this efficiency measure has a positive impact by pushing local governments to increase their Local Revenue (PAD). Natural resource management is critical for funding regional development, with TKD cuts to Central Sulawesi amounting to Rp 530 billion in 2025 and Rp 1.2 trillion in 2026. PAD in Central Sulawesi is being boosted through the mining sector, vehicle taxes, fuel taxes, surface water taxes, and increased participation in divestment obligations for Special Mining Business Licences (IUPK) to support regional finances. Meanwhile, downstream processing in the agricultural and fisheries sectors is a focus for developing local revenue and economy through exports of coconuts and durians to China.