Finance Minister Urges Local Spend of Transfer Funds Productively

Finance Minister Purbaya Yudhi Sadewa on 29 October 2025 in Jakarta urged all local authorities to channel Transfer to Regions (TKD) allocations into productive spending. He highlighted that using the funds for activities that boost regional economic growth is essential.

Purbaya said the Ministry of Finance will review the performance of TKD absorption and use each quarter until the first quarter of 2026. Local authorities are expected to demonstrate improved fiscal management in the next two quarters before requesting additional allocations.

Successful productive spending could raise state revenue, giving the central government room to increase TKD allocations. The measure aims to accelerate regional and national economic recovery.