Regional Transfers Slashed by Rp50.6 Trillion in 2025: Here's the Breakdown

Economics & Macro

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Leoni Susanto 13/08/2025 17:50 WIB

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The government has cut Rp50.6 trillion in regional transfer funds (TKD). The budget cuts include physical DAK, DAU, and even Yogyakarta's special funds.

Regional Transfer Budget Efficiency by Component (2025)

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Regional Transfers Slashed by Rp50.6 Trillion in 2025: Here's the Breakdown

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Regional Transfer Budget Efficiency by Component (2025)

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In early 2025, President Prabowo Subianto implemented budget efficiency measures through Presidential Instruction 1/2025 concerning Efficiency in Spending within the Implementation of the State Budget (APBN) and Regional Budget (APBD) for the 2025 Fiscal Year.

Total cuts reached Rp306.7 trillion, or approximately 8.5% of the total 2025 APBN expenditure. Of this amount, Rp50.6 trillion was cut from transfers to regions (TKD).

The reduced budget includes Special Allocation Funds (DAK) for physical infrastructure, reduced payments of revenue-sharing funds (DBH), General Allocation Funds (DAU), village funds, special autonomy funds (Otsus), and Yogyakarta Special Region funds.

The following is a complete list of TKD cuts for the 2025 fiscal year:

Physical DAK: Rp18.3 trillion (49.6% of the total 2025 Physical DAK allocation)
DAU: Rp15.7 trillion (3.5% of the 2025 DAU)
DBH Underpayment: Rp13.9 trillion (49.9% of the 2025 DBH underpayment)
Village Funds: Rp2 trillion (2.8% of the 2025 Village Funds)
Otsus Funds: Rp509.5 billion (2.9% of 2025 Otsus & DTI)
Yogyakarta Special Region Funds: Rp200 billion (16.7% of the 2025 Yogyakarta Special Region Funds)

The remaining Rp256.1 trillion was cut from 16 expenditure items of Ministries/Agencies. These items include spending on stationery, ceremonial events, official travel, and meetings or seminars.

The government plans to continue budget efficiency measures in 2026, including in the TKD budget. On August 5th, the Minister of Finance, Sri Mulyani, signed Minister of Finance Regulation (PMK) 56/2025 concerning the Procedures for Implementing Budget Efficiency in the State Budget.

Although not specified in terms of nominal amounts, the regulation states that TKD efficiency will target allocations for infrastructure funds, special autonomy funds, and regional special funds.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Regional Transfers Slashed by Rp50.6 Trillion in 2025: Here's the Breakdown

Regional Transfers Slashed by Rp50.6 Trillion in 2025: Here's the Breakdown

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Related Data

Gianyar Regency Government's Regional Revenue Realization as of December 2025

Realization of Gowa Regency Government's Regional Expenditure as of December 2025

Realization of Manado City Government's Local Own-Source Revenue (PAD) as of December 2025

Realization of Jayawijaya Regency Government's Regional Revenue as of December 2025

Realization of Alor Regency Government's Regional Revenue as of December 2025

Realization of Tegal City Government's Regional Expenditure as of December 2025

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Regional Transfers Slashed by Rp50.6 Trillion in 2025: Here's the Breakdown

Regional Transfers Slashed by Rp50.6 Trillion in 2025: Here's the Breakdown

Tags

Related Data

Gianyar Regency Government's Regional Revenue Realization as of December 2025

Realization of Gowa Regency Government's Regional Expenditure as of December 2025

Realization of Manado City Government's Local Own-Source Revenue (PAD) as of December 2025

Realization of Jayawijaya Regency Government's Regional Revenue as of December 2025

Realization of Alor Regency Government's Regional Revenue as of December 2025

Realization of Tegal City Government's Regional Expenditure as of December 2025

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