Indonesia transfers Rp720 trillion to regions, exceeding budget ceiling
Finance Minister Suahasil Nazara said additional funding supported local governments facing fiscal pressures, including disaster costs and personnel spending.
Indonesia’s central government has transferred Rp720 trillion to regional administrations, exceeding the Rp693 trillion ceiling in the 2026 state budget, Finance Minister Suahasil Nazara said on 27 October 2026.
Speaking at the Home Affairs Ministry in Jakarta, Suahasil said additional transfers were intended to support local government finances. He cited Rp20.5 trillion in extra funding this year for a number of administrations, including districts and cities experiencing fiscal difficulties.
The pressures included natural disasters and budgeting for personnel expenditure, he said. Suahasil added that the central government was closely examining each administration’s financial capacity, particularly its ability to implement its regional budget, and would continue providing additional support through 2027.
Disaster-related supplementary transfers to Sumatra reached Rp10.6 trillion in early 2026, according to Suahasil. He said the government had also allocated extra transfers in response to disasters in East Nusa Tenggara and forest and land fires.
