Indonesian Local Governments Tackle Cash Shortages Ahead of July Payments

The head of the Regional Finance and Asset Management Agency (BPKAD) in Kabupaten Seram Bagian Timur, Bakri Mony, said the district’s cash reserves are not empty. He explained that funds are being managed deliberately to ensure the July 2026 obligations—monthly civil‑servant salaries and the 13th‑month pay—can be met. Non‑urgent spending proposals from local agencies are being postponed until sufficient cash is available.

In Kabupaten Seluma, officials are still awaiting the disbursement of Rp77 billion in revenue‑sharing funds (DBH), comprising Rp51 billion from the Ministry of Finance and Rp26 billion from the Bengkulu provincial government. The delay is preventing the implementation of planned programs and the settlement of outstanding project debts from the 2024 budget. Local leaders are urging the central and provincial authorities to release the funds promptly so development activities and debt repayments can proceed.