DPD RI Approves Recommendations for 2027 State Budget Bill, Proposes Rp760 Trillion in Regional Transfer Funds

16 September 2026 oleh admin

Jakarta, dpd.go.id – The House of Regional Representatives of Indonesia (DPD RI) approved its consideration for the Fiscal Year 2027 State Budget Bill (RUU APBN) during an Extraordinary Plenary Session at the Parliament Complex, Senayan, Jakarta, on Wednesday (September 16, 2026). In its recommendations, DPD RI proposed increasing the Transfer to Regions (TKD) allocation from Rp735 trillion to Rp760 trillion to strengthen regional fiscal capacity and accelerate equitable development.

Speaker of DPD RI Sultan B. Najamuddin stated that offering considerations on the State Budget Bill fulfills DPD RI's constitutional mandate under Article 23, Paragraph (2) of the 1945 Constitution of the Republic of Indonesia. This mandates that the State Budget Bill submitted by the President to the House of Representatives (DPR RI) must take into account DPD RI's considerations.

"DPD RI's consideration of the State Budget Bill is part of a constitutional mandate to ensure regional interests are factored into the formulation of national budget policies," Sultan stated.

The proposed increase in TKD allocation refers to the upper limit of the TKD-to-GDP ratio in the 2027 Government Work Plan (RKP), set at 2.79 percent. DPD RI considers this increase necessary given the drop in the TKD share from 28.24 percent in the 2023 State Budget to 17.5 percent in the 2027 Draft State Budget. This trend requires close attention as it risks narrowing regional fiscal space to fund development and maintain economic stability.

Chairperson of DPD RI's Committee IV Nawardi emphasized that TKD allocations must consider regional characteristics, fiscal capacity, poverty rates, human resource quality, geographic conditions, and basic service loads.

"Changes in the proportion of TKD require scrutiny because they can constrain regional fiscal space for funding development and maintaining economic stability," Nawardi said. Overall, Committee IV of DPD RI accepted the 2027 Draft State Budget with several notes. Committee IV appreciated the reduction of the deficit ratio from 2.60 percent of GDP in the 2026 Budget to 2.40 percent in the 2027 Draft Budget, the recovery of Village Fund transfers to Rp77 trillion (a 39.72 percent increase), and the refinement of the PKPN architecture into eight clusters with 60 work programs and additional development target indicators.

Beyond increasing allocations, DPD RI stressed the importance of synchronizing TKD, ministry/agency spending, and national priority programs with the RKP, Regional Government Work Plans (RKPD), and Regional Budgets (APBD). This synchronization must ensure clear authority, funding sources, target data, performance indicators, and operational coordination.

Through proper alignment, national programs are expected not to burden regional budgets, but rather to bolster local economies, basic services, employment opportunities, and poverty alleviation efforts.