Kemenkeu readies transfer-to-region increase to Rp90 trillion in 2027
An initial Rp40 trillion in extra room is being prepared, but the final figure depends on 2027 budget talks and a deficit below 3 percent.
The Ministry of Finance is preparing to raise regional transfer funds in the 2027 state budget to as much as Rp90 trillion. Finance Minister Purbaya Yudhi Sadewa said the additional room now being prepared is around Rp40 trillion, but the amount can still change during next year’s APBN talks. He said the increase must still preserve fiscal discipline and keep the deficit below 3 percent. Regional fiscal strengthening will focus on optimizing local revenue, improving the quality of spending, and finding more creative financing sources. The government is also urging regional administrations to use development financing through PT Sarana Multi Infrastruktur for infrastructure such as schools, hospitals, drinking water, and district roads. As of May 31, 2026, realization of regional transfers stood at Rp306,1 triliun.