# Indonesia Home Affairs budget reforms

> Live situation record from CLSTR: https://clstr.news/situations/indonesia-home-affairs-budget-reforms
> Updated: 2026-08-04T19:33:06.000Z. Sources: 8. Developments: 2.

By July 2026 the Ministry of Home Affairs reported that its 2025 budget execution reached 99.46 % of the ceiling and backed a proposal to let regional heads receive a share of their own‑source revenue (PAD) as a bonus. The ministry then turned to reforms of the General Allocation Fund (DAU), drafting measures to allow DAU resources to fund salaries of contract civil servants (PPPK) in districts and provinces with limited fiscal space, in coordination with the Finance Ministry.

On 4 August 2026 the Finance Ministry, at President Prabowo Subianto’s direction, announced a one‑off Rp20.5 trillion grant for roughly 490 local governments to close fiscal gaps and ensure timely payment of civil‑servant (ASN) and contract‑based (PPPK) salaries. Finance Minister Purbaya Yudhi Sadewa said the funds would be released by the end of the following week and are classified as centrally‑directed assistance, not a Transfer to Regions (TKD). The Home Affairs Ministry outlined three steps for regions: improve spending efficiency, mobilise the DBH (revenue‑sharing) share, and provide targeted incentives. Pasaman Barat in West Sumatra has already received an additional Rp55.42 billion for its ASN payroll. The assistance aims to prevent salary delays, layoffs or benefit cuts and complements ongoing DAU reforms, while local leaders call for better data and possible extra transfers to address remaining payroll shortfalls.

## Claims

- The Indonesian Ministry of Finance will disburse Rp20.5 trillion to about 490 local governments. (corroborated by 5 sources)
- The aid is intended to maintain fiscal stability and enable timely payment of salaries for civil servants (ASN) and PPPK employees. (corroborated by 5 sources)
- The assistance is not classified as Transfer to Regions (TKD). (corroborated by 2 sources)
- President Prabowo Subianto directed the Ministry of Finance to provide the assistance. (corroborated by 2 sources)
- Allocation amounts will be calculated based on each region’s fiscal needs and gaps between APBD and actual expenditures. (corroborated by 2 sources)
- The assistance is scheduled to be disbursed by the following week. (corroborated by 2 sources)
- The Ministry of Home Affairs prepared three steps to address salary payment difficulties, including urging efficiency and facilitating DBH disbursement. (single source)
- Pasaman Barat received an official letter confirming an additional Rp55.42 billion to cover ASN salaries. (single source)

## Timeline

### 2026-08-04: Indonesia to Disburse Rp20.5 trillion to 490 Local Governments for Salary Payments

Indonesia will channel Rp20.5 trillion to about 490 local governments to fund ASN and PPPK salaries, a non‑TKD grant directed by President Prabowo and Finance Minister Purbaya, with disbursement slated for next

8 sources. https://clstr.news/cluster/indonesias-ministry-of-home-affairs-pushes-dau-reforms-for-regional-budgets

### 2026-07-16: Indonesia's Home Affairs Minister Tito Karnavian Highlights Budget Efficiency and Proposes PAD Bonus for Regional Heads

Indonesia's Home Affairs Minister Tito Karnavian reported a 99.46% budget execution for 2025 and backed a proposal to give regional heads a PAD revenue bonus to spur local fiscal growth.

3 sources. https://clstr.news/cluster/indonesias-home-affairs-minister-tito-karnavian-highlights-budget-efficiency-and-proposes-pad-bonus-

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Cite as: Indonesia Home Affairs budget reforms. CLSTR, https://clstr.news/situations/indonesia-home-affairs-budget-reforms