Government Prepares Rp2 Trillion for Local Fiscal Incentives in 2027
Half of the budget will come as support through Kemendagri and half as fiscal incentives from Kemenkeu, with details still being finalized.
The government is preparing Rp2 trillion for local government fiscal incentives in the 2027 Fiscal Year. Home Affairs Minister Muhammad Tito Karnavian said the scheme will continue after he reported to President Prabowo Subianto following the 2026 National Coordination Meeting of the Regional Financial Access Acceleration Team at Jakarta International Expo Kemayoran on Thursday, October 22. Of the total funds, Rp1 trillion will be distributed as government support through Kemendagri and another Rp1 trillion as fiscal incentives from the Ministry of Finance. Tito said implementation is still being finalized. Throughout 2026, Kemendagri is holding the Outstanding Local Government Appreciation program in three waves and six regional rounds, with categories including inflation control, waste management, poverty, stunting, unemployment, and creative financing.