Mendagri prioritizes TKD for weak-fiscal, disaster-hit regions
The new Rp18,9 triliun TKD added on 5 August is also meant to cover PPPK payroll and disaster recovery.
Minister of Home Affairs Muhammad Tito Karnavian is prioritizing additional Transfer ke Daerah for regions with low fiscal capacity and areas hit by disasters, while urging regional leaders to focus on increasing revenue, not just spending. At a press conference on the 2027 RAPBN at the Mar'ie Muhammad Building in Jakarta, Tito said the government added Rp18,9 triliun in TKD on 5 August 2026, including support for local governments to pay personnel costs, especially PPPK. Data from the Regional Finance Development Directorate General as of 31 July 2026 showed provincial and regency/municipal APBD revenue realization reached Rp606,8 triliun, or 51,05 percent, down from Rp691,8 triliun a year earlier. Regional spending was recorded at Rp538,6 triliun, or 42,5 percent. Tito also asked local governments to create a conducive business climate so PAD, taxes and levies can rise.