Indonesian authorities urge optimized use of regional transfer funds

Indonesian regional authorities and central government agencies are emphasizing the need for effective utilization of Regional Transfer Funds (TKD) to address specific regional challenges in Papua and Aceh.

In Papua, the Committee IV of the Regional Representative Council (DPD RI) is urging the central government to optimize TKD and Special Autonomy Funds (Otsus). Senator Elviana noted that these funds must go beyond administrative absorption to improve basic services, infrastructure, education, and health, specifically accounting for Papua's unique geographical and connectivity challenges.

In Aceh, the Coordinating Ministry for Human Development and Cultural Affairs (Kemenko PMK) has called for the accelerated use of additional TKD to support post-disaster recovery. Local governments in Aceh have been tasked with reaching a minimum 50 percent absorption rate by the end of October 2026. Current reports indicate low absorption rates in several districts, such as Nagan Raya and Pidie Jaya, due to obstacles in procurement, land acquisition, and heavy equipment needs.