Indonesia's Home Affairs Minister Tito Karnavian Highlights Budget Efficiency and Proposes PAD Bonus for Regional Heads

On 16 July 2026, Indonesia's Minister of Home Affairs Muhammad Tito Karnavian told a working meeting with DPR Commission II that the Ministry's 2025 budget execution reached 99.46 % of its effective ceiling, amounting to Rp 3.76 trillion – one of the highest rates among ministries. He explained that the original ceiling of Rp 4.79 trillion was cut to Rp 2.61 trillion under the government's spending‑efficiency policy, then raised to Rp 3.79 trillion after a budget relaxation from the Finance Ministry. The additional funds support IT infrastructure for the civil registration directorate, priority spending, and the regional government information system (SIPD).

Karnavian also voiced support for a proposal that would allow regional heads to receive a percentage of their region's own‑source revenue (PAD) as a bonus. He said the idea could motivate local leaders to increase PAD without burdening citizens, noting, "Ada usulan kepala daerah mereka bisa mendapatkan persentase dari PAD. Menurut pendapat saya bagus," and "Kenapa? Supaya bisa mendorong kepala daerah untuk berpikir dan berkreasi menaikkan PAD, pendapatan asli daerah tanpa membebankan rakyat, dan dia bisa mendapatkan persentase misalnya dari situ." He stressed that the proposal requires detailed study and coordination among ministries and the DPR before any regulation is drafted.