Deputy Finance Minister Purbaya Meets VP Gibran on Transfers

Deputy Finance Minister Purbaya Yudhi Sadewa met Vice President Gibran Rakabuming Raka on Friday, 17 October 2025 in Jakarta. The discussion centered on the Regional Transfer (TKD) policy and the proposed 2026 budget adjustments.

The government initially proposed a TKD allocation of IDR 650 trillion for 2026, down from IDR 919.9 trillion in 2025, but the meeting resulted in an additional IDR 43 trillion to ease regional fiscal pressure. The revision balances national fiscal conditions with concerns from local governments about budget cuts.

Purbaya indicated that the next allocation will be based on an assessment of regional spending, with a recalculation planned for the third quarter if economic performance improves. The approach aims to preserve fiscal stability while supporting regional development needs.