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Central Government to Cut Regional Fund Transfers

Monday, August 11, 2025

The government plans to cut transfer budgets to the regions in the 2026 Draft State Budget, widening the development gap between the center and the regions.

arsip tempo : 177669999560.

Illustration. TEMPO/Alvin Siregar. tempo : 177669999560.

“ZERO, there’s no fund for construction,” said Mentawai Islands Regent Rinto Wardana Samaloisa, in West Sumatra, on Monday, August 4, 2025. His regency, he explained, had not received a single rupiah in physical special allocation funds (DAK), part of the regional funds transfers, to finance infrastructure projects. Yet the local government urgently needs to build roads so residents can get to school, access health services

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Ghoida Rahmah

Caesar Akbar (Jakarta), Fachri Hamzah (West Sumatra), and Ahmad Fikri (West Java) contributed to the writing of this article. 

State Budget Indonesian village aid funds Regional Budget GDP free nutritious meal VAT VAT increase budget cuts regional funds transfer
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