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[BUSINESS] · Indonesia · 2 sources

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Siak Regency Regent challenges Ministry of Finance over declining oil revenue sharing

Siak Regency Regent Afni Zulkifli has questioned the Ministry of Finance regarding a significant projected decline in the 2027 Oil and Gas Revenue Sharing Fund (DBH Migas). While the regency previously received nearly Rp600 billion, the 2027 projection has dropped to approximately Rp36 billion.

During a meeting with the Acting Director General of Fiscal Balance, Nufransa Wira Sakti, officials discussed the national budget for 2027. Of the Rp63.3 trillion total national DBH allocation, Rp59.3 trillion is for regular sharing, leaving only Rp4 trillion to address the Rp70 trillion in outstanding DBH arrears owed by the central government to regions. Siak is expected to receive roughly Rp140 billion in 2027 as part of an installment plan to settle its Rp411 billion debt.

Regent Afni also requested transparency regarding the data used to calculate these figures, specifically asking for access to oil lifting, production, and Non-Tax State Revenue (PNBP) data. The Ministry indicated that Riau's PNBP Migas contribution is projected to drop from 4.6% to 1.6% in 2026, a decline that impacts the revenue sharing for all regions in Riau.

Entities

Afni Zulkifli · Ministry of Finance · Nufransa Wira Sakti · Siak Regency