Ministry Urges Public Services Remain Optimal Despite TKD Cut

On 28 October 2025, the Ministry of Home Affairs said regional governments must maintain public service quality even though the fiscal transfer to regions (TKD) will be reduced in 2026.

The 2026 TKD is set at Rp692.99 trillion, well below this year's outlook. Director General Restuardy Daud explained that each region has a work plan (RKPD) and must streamline supporting activities, while Director General Agus Fatoni highlighted the need to use local revenue, BUMD, BLUD and partnerships with enterprises.

The ministry pledged to assist regions in handling fiscal dynamics, and the Ministry of Finance indicated it will raise TKD again if regions improve spending quality.