Yorrys Raweyai Emphasizes the Importance of Reformulating Fiscal Decentralization for Regional Economic Equality

03 June 2026 oleh admin

Jakarta, dpd.go.id - Vice Speaker of the House of Regional Representatives of the Republic of Indonesia (DPD RI), Yorrys Raweyai, stated that the implementation of Law No. 1 of 2022 concerning the Financial Relations between the Central Government and Regional Governments has not been well executed. The widespread phenomenon of visible economic disparity, particularly in Indonesia's regions, drives the need for a critical review to reformulate a fair and equitable fiscal decentralization design.

"The disparity in fiscal capacity between regions remains quite large. The dependence of most regional governments on Transfers to Regions (TKD) is still very high. At the same time, many regions are still unable to cultivate their own Local Genuine Revenue (PAD)," Yorrys said during his opening remarks at the Focus Group Discussion (FGD) on the Reformulation of an Equitable Fiscal Decentralization Design at the Parliament Complex, Senayan, on Wednesday (3/6).

In his speech, Yorrys also emphasized the imperfect implementation of Law No. 1 of 2022 regarding the financial relationship between the Central Government and Regional Governments, which aims to reduce fiscal disparity by aligning central and regional fiscal policies.

"In several resource-rich regions, the economic benefits received by the region are not yet fully proportional to their contribution to state revenue. As a result, many regions still rely on transfers from the central government as their economic driver," the Deputy Speaker of DPD RI continued.

This statement aligns with that of the Regent of Siak, Riau, Afni Zulkifli, who attended the FGD as a speaker. According to her, as a Regent of an area rich in the oil and gas sector, the profits obtained by the region are still far from decent.

"The fund allocation received by the region (Siak Regency) remains insignificant. Currently, the allocation of the Revenue Sharing Fund (DBH) from Oil Non-Tax State Revenue (PNBP) stands at 84.5% for the central government, while the region only receives 15.5%," Afni explained.

Responding to the suboptimal implementation of the DBH, the Executive Director of the Regional Autonomy Implementation Monitoring Committee (KPPOD), Herman Suparman, submitted a proposal to the DPD RI to ensure that all regional interests are realized in the form of state policy.

"It is important for the DPD RI to use its authority to push for regional policies. We propose a specific equalization scheme where the Specific DBH for producing regions is 60%, and the DBH for development equalization is 40%."

At the FGD, Yorrys also stressed the importance of reformulating the Law on Financial Relations between the Central Government and Regional Governments (UU HKPD). He noted that it needs to be directed toward creating central-regional financial relations that better reflect aspects of justice, transparency, and accountability, while being oriented toward strengthening regional fiscal independence.