17 Regencies/Cities with the Highest DAU Delay Values

The Ministry of Finance issued Minister of Finance Regulation No. 125/PMK.07/2016 concerning the postponement of the disbursement of General Allocation Funds (DAU) for the 2016 fiscal year. This regulation was issued because the Government intends to adjust state expenditure due to insufficient state revenue realization. The nationally postponed DAU value reached Rp 19.4 trillion, while the postponement of DAU for regencies/cities reached Rp 14.7 trillion.

DAU was chosen because this instrument is one of the state's tools for equalizing financial capacity among regions. As written in the regulation, this DAU postponement has considered fiscal capacity, expenditure needs, and the cash balance position in the regions at the end of 2016, which are categorized as very high, high, fairly high, and medium. With this postponement, the disbursement of funds will be calculated as an underpayment to be budgeted for the following year in accordance with state finances.

The regulation includes 143 regencies/cities where the disbursement of DAU funds is planned to be postponed for the period from September to December. Seventeen regions have a postponement value exceeding Rp 200 billion. The five regions with the largest postponed disbursements are Bogor Regency, Garut Regency, Bandung City, Tasikmalaya Regency, and Banyumas Regency.