Counting the City’s Wallet: Minister of Home Affairs Receives APEKSI Audience

 

 
JAKARTA, 19 September 2025 – On Friday morning, the APEKSI Board, along with Chairperson of the Regional Commissariat, held an audience with the Ministry of Home Affairs. Minister of Home Affairs Tito Karnavian, Deputy Minister of Home Affairs Bima Arya, and their staff met with the mayors in the Main Meeting Room of the Ministry of Home Affairs in Jakarta.
 
APEKSI Chairperson/Mayor of Surabaya, Eri Cahyadi, emphasized the commitment of member cities to align regional and central priorities through support for the Asta Cita program. During the audience, he outlined various APEKSI initiatives and the aspirations of the cities: from the challenge of reducing regional budget allocations (TKD), strengthening regionally-owned enterprises (BUMD), to affirmative action needs for regions with limited regional revenue (PAD).
 
The Minister of Home Affairs provided direction emphasizing strategic steps for regions: implementing spending efficiency, being creative and innovative in seeking new revenue sources, strengthening regionally-owned enterprises (BUMD), involving the private sector, and proactively lobbying ministries/agencies to ensure regional programs align with central government programs.
 
The aspirations session became a lively moment: the mayors addressed real-world issues, ranging from weak fiscal conditions, regional debt burdens, tax regulations affecting local revenue (PAD), the acceleration of public-private partnerships (KPBU), asset and personnel management, balancing funds in accordance with the HKPD Law, and fair regulations for e-commerce transactions at the city level.
 
This hearing emphasized the importance of central-regional synergy. Although each city’s financial situation differs, optimism must be maintained to ensure sustainable development continues. APEKSI is committed to continuing concrete actions: calculating the impact of the reduction and loss of regional revenue (TKD) (DBH, DAU, DAK, and DID) in 2026 experienced by 93 autonomous cities; facilitating hearings and coordination across ministries/agencies to find solutions for fiscal resilience; and encouraging local revenue (PAD) optimization, inflation control, expanding cooperation and investment, and strengthening governance and innovation in development financing. All of these efforts are aimed at ensuring that the interests of cities remain upheld and that their benefits truly reach the public.
 

Audience material can be accessed at [eLibrary]