Increased Regional Transfers, Revenue Sharing Funds Soar 71.2% in July 2023

The Ministry of Finance reported that the disbursement of regional transfer funds (TKD) reached Rp440.9 trillion in July 2023, as recorded in the State Budget (APBN).

The value of these transfers increased by 6.6% year-on-year (yoy) from Rp413.6 trillion in July 2022. This figure represents 54.1% of the total transfers.

Finance Minister Sri Mulyani explained that the largest portion of TKD was the revenue-sharing fund (DBH), reaching Rp55.64 trillion, a 71.2% yoy increase from Rp32.50 trillion. This is because local governments (pemda) also benefited from the increase in shared national revenue.

"For example, excise duties on tobacco products, mining, and oil and gas. When commodity prices rise, so does the revenue-sharing fund," said Ani, her nickname, in a virtual press conference for *APBN Kita Edisi Agustus 2023* on Friday (11/8/2023).

The next largest disbursement was non-physical special allocation funds (DAK nonfisik) totaling Rp93.32 trillion in July 2023. This figure increased by 25% (yoy) from Rp74.64 trillion previously.

Ani explained that this non-physical DAK is for the health and education sectors in the regions. She considered this increase a positive sign, as the funds are used to manage community health centers (puskesmas), regional hospitals, and schools under the Ministry of Education, Culture, Research, and Technology (Kemendikbudristek).

"This increase shows that local governments are increasingly better at meeting the requirements, so the quality of health and education services is expected to improve with the central government's transfer for health and education operations," said Ani.

In terms of nominal value, the largest amount was the general allocation fund (DAU), reaching Rp226.57 trillion in July 2023. However, this figure decreased by 4.6% (yoy) from Rp237.54 trillion disbursed previously.

Ani stated that this decrease occurred because local governments needed to prepare for and meet the requirements for the disbursement of specific DAU stage two out of three disbursements.

"So that local governments truly utilize the Rp226.57 trillion in government (central) transfers for public services," said Ani.

Here's a breakdown of TKD disbursement for July 2022-2023:

* General Allocation Fund (DAU)
July 2022: Rp237.54 trillion
July 2023: Rp226.57 trillion
* Non-Physical Special Allocation Fund (DAK nonfisik)
July 2022: Rp74.64 trillion
July 2023: Rp93.32 trillion
* Revenue-Sharing Fund (DBH)
July 2022: Rp32.50 trillion
July 2023: Rp55.64 trillion
* Village Fund (Dana Desa)
July 2022: Rp41.65 trillion
July 2023: Rp40.59 trillion
* Physical Special Allocation Fund (DAK fisik)
July 2022: Rp14.74 trillion
July 2023: Rp13.60 trillion
* Special Autonomy (otsus)
July 2022: Rp9.31 trillion
July 2023: Rp7.14 trillion
* Fiscal Incentives (Insentif fiskal)
July 2022: Rp2.14 trillion
July 2023: Rp2.03 trillion
* Special Fund (Dana Istimewa/Dais)
July 2022: Rp1.05 trillion
July 2023: Rp1.08 trillion
* Grants (Hibah)
July 2022: Rp874 billion/Rp0.874 trillion
* Total
July 2022: Rp413.6 trillion
July 2023: Rp440.9 trillion

(See also: Realisasi Belanja Negara Hanya Naik 1,2% pada Juli 2023)