Indonesia advances regional fiscal autonomy, highlighting Jakarta's DBH

Deputy Chair of Commission II of the DPR, Zulfikar Arse Sadikin, urged the Indonesian central government to shift its fiscal approach by granting greater authority and financial resources to regional governments. He emphasized that the implementation of the 2014 Regional Government Law should move beyond administrative programs to a framework where the central state focuses on regulation, guidance, and oversight, allowing regions to manage most public affairs and improve their own revenue streams.

DPD member Fahira Idris called for the Ministry of Finance to treat Jakarta's revenue‑sharing (DBH) as a strategic agenda, proposing four measures: establishing a clear institutional channel for DBH, safeguarding essential public services, ensuring transparent communication of fiscal impacts, and supporting creative, accountable financing solutions. Both officials stress the need for stronger fiscal cooperation between the central and local levels to sustain public services and development.