Driving Regional Fiscal Flexibility

 

 

JAKARTA – Committee IV and Committee I of the DPD RI held a strategic Public Hearing (RDP) on Monday (19/01/2026) at the Parliament Complex, Senayan. This meeting brought together all key elements of regional government, including Regional Government and Regional House of Representatives (DPRD) associations, such as APEKSI, APKASI, APPSI, ADPSI, ADKASI, ADEKSI, APDESI, and APDESI Merah Putih.

 

The primary focus of the discussion was the evaluation of Regional Transfer (TKD) allocations within the Fiscal Year 2026 Regional Budget (APBD), as well as an inventory of proposed changes to the State Finance Law package. The objective is singular: to create a State Budget (APBN) planning system that is more flexible and aligned with the actual needs of local communities.

 

TKD Dynamics: Voices from Cities Across Indonesia

 

APEKSI highlighted various dynamics and challenges faced by city governments in implementing the TKD throughout the 2025 fiscal year and the 2026 projections. The limited flexibility in utilizing these transfer funds is considered a major obstacle for regions attempting to accelerate development that fits their specific local characteristics.

 

Towards More Adaptive Planning

 

This hearing is expected to be a turning point in the drafting of a more modern State Finance Law package. The DPD RI is committed to bringing these proposals to a higher level to ensure that the APBN serves not only as a central instrument but also as a flexible engine for regional prosperity.