[REVISION HISTORY]

Indonesian regional government funding and salary support

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-08-11 02:41 UTC → 2026-08-12 03:59 UTC · added ~~removed~~

In late July 2026, regional education departments in Indonesia addressed localized funding needs. In South Sumatra, officials confirmed that non-permanent teachers would receive honoraria through the Operating School Assistance (BOS) fund, provided they meet specific administrative and registration requirements. Simultaneously, Central Java allocated Rp 50 million for classroom repairs in Semarang. By August 2026, the scope of financial support expanded to a national level. The central government initiated large-scale transfers to hundreds of regional governments to ensure the payment of salaries for Civil Servants (ASN) and Government Employees with Work Agreements (PPPK). These disbursements, totaling between Rp 18.9 trillion and Rp 20.5 trillion, were facilitated through unpaid Revenue Sharing Funds and General Allocation Fund top-ups to alleviate fiscal pressures in regions with weak financial conditions. On August 11, 2026, the government confirmed the allocation of Rp 18.9 trillion to 546 local governments. This funding includes Rp 10 trillion in unpaid Revenue Sharing Funds (DBH) and over Rp 8 trillion in additional General Allocation Funds (DAU). Minister of Home Affairs Tito Karnavian outlined three schemes to prevent local employee layoffs: encouraging budget efficiency by reducing non-essential spending, utilizing unpaid DBH for personnel expenses, and providing additional DAU if efficiency and DBH are insufficient. While members of the House of Representatives (DPR RI) welcomed the measure, they emphasized the necessity of improved regional financial governance. There are ongoing calls to evaluate the Regional Transfer (TKD) scheme for 2027 to ensure decentralization is supported by adequate financial transfers.

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