Four Provinces Have Very High Regional Fiscal Capacity

Finance Minister Sri Mulyani Indrawati has issued Minister of Finance Regulation (PMK) Number 120/PMK.07/2020 concerning the Regional Fiscal Capacity (KFD) Map. Through this regulation, the central government maps the level of regional financial capacity or KFD. This can be a reference for the central government to determine the amount of loans, grants, and accompanying funds for regions.

The KFD formula is determined from the result of subtracting regional revenue from revenue whose use has been determined, plus certain expenditures. From this formula, the government divides KFD into five categories: very low, low, medium, high, and very high.

Four provinces fall into the very high KFD category with scores above 1.92, namely Jakarta, West Java, Central Java, and East Java. Five provinces fall into the high KFD category with scores of 0.934-1.92, namely Papua, East Kalimantan, North Sumatra, Riau, and South Sumatra.

Then, eight regions fall into the medium KFD category with scores of 0.564-0.934. Seven regions fall into the low KFD category with scores of 0.277-0.564. Meanwhile, nine regions fall into the very low KFD category with scores below 0.277.