Minister of Finance Disburses IDR599T in Regional Transfers, Down 7%

JAKARTA, DDTCNews - The government has disbursed funds for transfer to regions (transfer ke daerah/TKD in Indonesian) totalling IDR599.2 trillion to local governments throughout January–September 2026. TKD realisation fell 7.08% compared with the same period last year, when the figure stood at IDR644.9 trillion.

Minister of Finance, Suahasil Nazara, said TKD expenditure realisations had reached 82.4% of the allocation set for this year, valued at IDR727.2 trillion.

"Up to September, IDR599.2 trillion has been transferred; that is 82.4% of the state budget," he said, as quoted on Sunday (11/10/2026).

Suahasil explained that the 2026 TKD allocation had been increased, from an original IDR693 trillion to IDR727.2 trillion. The allocation was raised because local governments required additional funds to address disasters in their respective regions, particularly in Sumatra, Kalimantan and East Nusa Tenggara (Nusa Tenggara Timur/NTT in Indonesian).

The central government will continue to disburse TKD to local governments through to the end of the budget year. These disbursements are expected to assist local governments in realising their allocated budgets.

"There will be further transfers to regions in October, November, and December," said Suahasil.

Further, Suahasil elaborated that TKD disbursements comprise several components, including the general transfer funds (dana transfer umum/DAU in Indonesian). The DAU is channelled towards the payment of salaries for local civil servants, participants in the national health insurance (jaminan kesehatan nasional/JKN in Indonesian) scheme and Jamsostek participants.

In addition, there are special transfer funds (dana transfer khusus/DAK in Indonesian), encompassing the physical DAK, non-physical DAK and local grants. DAK allocations are used, among others, to finance school operational assistance (bantuan operasional sekolah/BOS in Indonesian), public schools, teacher allowances and the construction of regional public hospitals (rumah sakit umum daerah/RSUD in Indonesian).

Meanwhile, TKD components in the form of village funds, incentive funds, special autonomy funds and special privilege funds are disbursed for several purposes, including providing direct cash assistance (bantuan langsung tunai/BLT in Indonesian), supporting construction in special autonomous regions and establishing red-and-white village/subdistrict cooperatives. (rig)