August 5, 2026 | 11:47 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa announced that the central government will distribute Rp20.5 trillion in financial assistance to regional administrations no later than next week to maintain local fiscal stability.
Purbaya emphasized that this funding does not constitute an additional Regional Transfer (TKD), but rather targeted central assistance tailored to the specific needs of each region.
"It is not a TKD, but central government assistance to bolster regional financial stability," Purbaya stated during a press briefing in Jakarta on Wednesday.
He noted that the distribution process is finalizing administrative requirements and is scheduled to begin rollout by next week at the latest.
According to Purbaya, the allocation for each region was determined based on its respective fiscal health, taking into account any existing budget deficits.
He expressed hope that this financial injection would alleviate fiscal pressures on local governments, particularly regarding payroll obligations for contract-based government employees (PPPK).
"This central assistance should lighten their [financial] burden, so they can manage operations with more flexibility," he said.
Speaking at the same event, Nufransa Wira Sakti, Acting Director General of Fiscal Balance at the Ministry of Finance, explained that the aid was allocated following a comprehensive assessment of budgetary gaps between regional balance sheets (APBD) and local operational needs.
He stressed that the primary objective of this assistance is to guarantee that regional authorities can fulfill salary commitments for local civil servants (ASN), encompassing both full-time and part-time PPPK contract workers.
"We have calculated that several local governments have gaps between the APBD and their actual spending needs, particularly for paying the salaries of regional ASN and PPPK. We are closing these gaps through central government assistance to local governments," Nufransa explained.
He added that the funding will be disbursed across 497 regional administrations, with specific amounts adjusted according to their individual fiscal standing.
"We hope these 497 local governments can meet their needs so that there will be no layoffs among PPPK staff," he noted.
As of the first half of 2026, the central government has disbursed Rp357.4 trillion in Regional Transfers (TKD), a decline compared to the Rp402.5 trillion realized during the same period last year.
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