Baleg DPR RI reviews UU HKPD to address regional budget deficits

The Indonesian House of Representatives' Legislative Body (Baleg DPR RI) is considering a review of Law Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments (UU HKPD). Member Arif Rahman noted that current regulations limiting regional personnel spending to a maximum of 30 percent of the Regional Budget (APBD) have caused budget deficits in several areas, leading to salary cuts for civil servants.

To address this, there are calls for policy relaxation and a more proportional redistribution of revenue-sharing funds based on each region's economic potential. Baleg Chairman Bob Hasan confirmed that regional taxation and HKPD issues are key points to be considered for the 2027 National Legislation Program (Prolegnas).

During working visits to Banten, Baleg officials emphasized that the development of Prolegnas 2027 must involve meaningful public participation and academic input rather than serving as a mere administrative formality. The body is actively gathering perspectives from local governments and universities to ensure the legislative agenda addresses urgent societal needs.