DPD RI Urges Government to Increase Regional Transfers to IDR 780 Trillion

17 September 2026 oleh admin

Jakarta, dpd.go.id — The Chairperson of Committee IV of the DPD RI, Senator Ahmad Nawardi, S.Ag., presented the consideration of the DPD RI regarding the 2027 Fiscal Year State Budget Draft (RUU APBN) during the 2nd Extraordinary Plenary Session of the DPD RI on Wednesday (16/9).

In principle, the DPD RI accepts the 2027 State Budget Draft as a government fiscal policy instrument. However, Ahmad Nawardi emphasized that the State Budget must lean more in favor of the regions, particularly in strengthening basic services, infrastructure development, villages, and natural resource-producing regions.

"Development must not only be strong at the center while regions bear the burden of public service needs with an increasingly narrow fiscal space. The state budget must be fair for both the center and the regions," Nawardi asserted.

The DPD RI highlighted the decrease in the share of Regional Transfers (TKD), which dropped from 28.24 percent in 2023 to 17.94 percent in 2027. Consequently, the DPD RI is urging an increase in Regional Transfers from IDR 735 trillion to IDR 780.22 trillion by optimizing central government reserve expenditure without adding to debt or the deficit.

In addition, the DPD requested that the government restore the Physical Special Allocation Fund (DAK Fisik) to at least IDR 20 trillion to support roads, irrigation, clean water, schools, and community health centers (Puskesmas). Regular Village Funds (Dana Desa) are also pushed to increase from IDR 25 trillion to a minimum of IDR 30 trillion so that villages have adequate capacity to meet public needs.

The DPD RI also requested that resource-producing regions receive a fair share of the increased revenues from natural resources. Improvements to tax payment regulations must be made so that corporate taxes better reflect the locations of business operations, rather than just headquarters locations.

"Producing regions bear the impact of mining, oil, plantations, and other economic activities. Therefore, the rights of the regions over state revenue must be safeguarded," said Nawardi.

In its considerations delivered by the Chairperson of Committee IV, the DPD RI also called for serious attention to regional fiscal risks, including the accumulation of Revenue Sharing Fund (DBH) underpayments, pension obligations for regional civil servants (ASN), and the fiscal transition needs of Aceh after its Special Autonomy Fund ends in 2027.

Committee IV also emphasized that the Papua Special Autonomy Fund and the Yogyakarta (DIY) Special Region Fund must continue to be used in accordance with their intended purpose and statutory mandates.

Ahmad Nawardi also expressed his gratitude and appreciation to Committee IV's working partners who attended the Plenary Session: Governor of Bank Indonesia Destry Damayanty, Chairman of the OJK Board of Commissioners Frederica Widyasari Dewi, Minister of Finance Suahasil Nazara, and Minister of National Development Planning/Head of Bappenas Rachmat Pambudy.

"The presence of our working partners demonstrates the importance of synergy between the center and the regions. We hope this dialogue and cooperation will continue to be strengthened to produce fiscal policies that are fairer, more transparent, and truly felt by communities across all regions. Budgetary policy must ensure that no region is left behind. Because regions are not mere complements to national development. The regions are Indonesia, and Indonesia is its regions," concluded Ahmad Nawardi.