Minister Purbaya's Plan to Prevent Regional Funds in Banks

Finance Minister Purbaya Yudhi Sadewa announced two new initiatives aimed at reducing regional government funds that sit idle in banks. The measures are slated to be implemented in the 2026 fiscal year.

The first initiative involves designing a faster Transfer to Regions (TKD) system so that funds can be used promptly for local expenditures. The second initiative focuses on policy dialogue and budgeting training for regional authorities to improve their capacity to manage and spend allocations.

Successful implementation should enable regions to spend their budgets on time, leaving little unspent at year‑end and boosting local economic impact. The Directorate General of Fiscal Balance will review TKD distribution policies in 2026 to ensure their effectiveness.