What changed
2026-08-06 15:05 UTC → 2026-08-08 00:12 UTC ·
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In By July 2026 the Ministry of Home Affairs reported that its 2025 budget execution had reached 99.46 % of the ceiling and supported backed a proposal allowing to let regional heads to receive a share of their own‑source revenue (PAD) as a bonus. By early August officials were focusing on reforms The ministry then turned to reforms of the General Allocation Fund (DAU), including a draft drafting measures to permit allow DAU resources to cover fund salaries of contract civil servants (PPPK) in districts and provinces lacking with limited fiscal space, with in coordination planned with the Finance Ministry. On 4 August 2026 the Finance Ministry Ministry, at President Prabowo Subianto’s direction, announced a one‑off Rp20.5 trillion top‑up grant for roughly 490 local governments to preserve close fiscal stability gaps and ensure timely payment of civil‑servant (ASN) and contract‑worker contract‑based (PPPK) salaries. The assistance, directed Finance Minister Purbaya Yudhi Sadewa said the funds would be released by President Prabowo Subianto, is calculated on each region’s fiscal gap the end of the following week and is not are classified as centrally‑directed assistance, not a Transfer to Regions. Regions (TKD). The Home Affairs Ministry outlined three steps to help regions facing salary shortfalls, urging for regions: improve spending efficiency and indicating efficiency, mobilise the possible release of additional DAU or DBH funds. Regencies such as Seram Bagian Timur and Tambrauw are coordinating with central ministries to secure unexpected‑expense budgets for drought relief, forest‑fire response, (revenue‑sharing) share, and to improve data accuracy for the DAU. Further details released later on 4 August confirmed that Finance Minister Purbaya Yudhi Sadewa will disburse the Rp20.5 trillion to about 490‑497 administrations based on each region’s fiscal shortfall, with funds to be released the following week. The Home Affairs Ministry continues to work with local officials to optimise DAU allocations, while a parliamentary member provide targeted incentives. Pasaman Barat in West Sumatra has called for already received an additional Transfer to Regions Rp55.42 billion for its ASN payroll. The assistance aims to cover lingering prevent salary gaps. Local leaders emphasized improving delays, layoffs or benefit cuts and complements ongoing DAU reforms, while local leaders call for better data and using contingency funds for emergency relief, underscoring ongoing fiscal pressures on sub‑national governments. possible extra transfers to address remaining payroll shortfalls.