Indonesian Central Government's Revenue Sharing Funds for Regions to Decrease by 75% in 2026

Data on Indonesia's revenue sharing funds (DBH) can be accessed at Databoks-series.katadata.co.id.

Summary:

• The Indonesian government is cutting revenue sharing funds (DBH) for regional governments in 2026.
• This has sparked protests from governors.

Revenue Sharing Funds (DBH) are central government revenues in Indonesia allocated to regional governments, with the aim of funding regional needs and reducing fiscal disparities between the central and regional administrations.

These DBH originate from taxes, excise duties, and levies from the utilization of natural resources collected by the central government.

During the 2019-2025 period, DBH allocations ranged from IDR 93 trillion to IDR 205 trillion per year, with details as shown in the chart.

However, in the 2026 State Budget Draft (RAPBN), the central government has only prepared IDR 45.08 trillion for DBH.

This figure represents a decrease of approximately 75% compared to the DBH outlook in the 2025 State Budget (APBN).

This has sparked protests from 18 governors, including North Maluku Governor Sherly Tjoanda.

"The total central government funds transferred to North Maluku Province in 2025 amounted to IDR 10 trillion. In 2026, it will only be IDR 6.7 trillion, meaning a cut of IDR 3.5 trillion. Of that cut, the largest portion, about 60%, is from DBH," said Sherly, as reported by Katadata.co.id (October 7, 2025).

"Spending on roads, infrastructure, and bridges will be reduced. Therefore, we ask that there be no cuts," Sherly stated.

In response to these protests, Minister of Finance Purbaya Yudhi Sadewa stated that he would open further discussions.

"We will discuss this again so that this policy remains proportional and does not hinder public services in the regions," Purbaya said, as reported by Kompas.com (October 8, 2025).

"The central government cannot continue to increase the budget burden without ensuring the effectiveness of its use. Many regions have low absorption rates and do not target funds effectively. This needs to be improved," he added.