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00:00:00the central government will immediately address this problem, because this problem has
00:00:03been going on for months , so it shouldn't be
00:00:07delayed any longer. There must be a concrete solution so that the pressure
00:00:11on this region can be immediately overcome. If
00:00:14we analogize the relationship between the central government and the regions as that of a parent and child
00:00:18, what is happening now is educating or letting the child be, Mas
00:00:21Jaka, that's right, if until now, because it's been
00:00:24months, this problem seems
00:00:28to be left unchecked. Actually, there's an attempt
00:00:39to discipline, it's allowed, they say, for the sake of the region not being extravagant to be efficient,
00:00:43but by cutting such a large amount of TKD,
00:00:46cutting such a large amount of DBH, I
00:00:48think the impact will ultimately be on the people
00:00:51. So, the effort to discipline is
00:00:55good, but the effort not to disrupt operational
00:00:59performance, whether in the region or not, must be the main priority.
00:01:02Okay, Mas Jaka, we will jointly see the editorial
00:01:06of Media Indonesia, Thursday, August 6, 2026,
00:01:09immediately address regional fiscal pressure.
00:01:23Immediately address regional
00:01:25fiscal pressure.
00:01:40But earlier, I also heard all the complaints from regional heads that it does not
00:01:44solve our problems in the region because we currently do not have the cash
00:01:47flow to pay the salaries of P3K until the end
00:01:50of the year.
00:01:56We count
00:02:14day by day, more and more local governments are expressing the fiscal
00:02:18pressure they are facing. Take North
00:02:22Maluku, Purwakarta Regency, and almost all regional
00:02:25and municipal governments in Central
00:02:27Java who are openly struggling to pay
00:02:31Finance Minister Purbaya himself estimates that there are
00:02:34490 regional governments that need assistance to pay
00:02:37salaries and minimum operational costs.
00:02:40Unfortunately, with such clear
00:02:43problems, the solution to regional fiscal pressure is still
00:02:46unclear. Instead of implementing the principles of partnership and
00:02:50complementarity, so far what is visible is merely
00:02:54reflecting the problem back. Regional governments are asked
00:02:58month after month to continue to carry out efficiency.
00:03:01Such a response must be stopped immediately.
00:03:05The central government must immediately and seriously help overcome the fiscal
00:03:09pressure experienced by the regions. The central
00:03:12government surely understands that the smooth flow of regional fiscal
00:03:15affairs is also very crucial for achieving
00:03:19maximum economic growth. Currently, as
00:03:22announced by the Central Statistics Agency (BPS) yesterday, Indonesia's
00:03:26economic growth in Q2 2026 reached 5.2%.
00:03:31Although exceeding expectations, this economic
00:03:34growth slowed down compared to Q1
00:03:372026, which was
00:03:405.61%.
00:03:43With global conflicts still heating up, plus
00:03:46El Nino right before our eyes, regional finances
00:03:50must be healthy if we don't want economic growth to slow down
00:03:53further. Especially since it was the central government
00:03:56that asked regional governments not to conduct layoffs.
00:04:30The islands some time ago are a real
00:04:33picture of how the fiscal incapacity of local governments
00:04:36leads to bureaucratic and administrative conflict. Not
00:04:40only does it have the potential to spread, this kind of conflict clearly impacts
00:04:43the quality of public services.
00:04:47Therefore, we urge stakeholders to immediately
00:04:50find solutions and stop using the shield
00:04:54of regional inefficiency.
00:04:58Many cases show that
00:05:02this is the result of cuts in transfers to regions, and therefore
00:05:06the central government must act immediately.
00:05:10it will help, because what The crucial intervention of the center more explicitly was
00:05:13clearly captured from the coordination meeting that had been held by
00:05:16the Ministry of Home Affairs and the Ministry of Finance. The Ministry of Home Affairs
00:05:19has calculated that at least the Central Government has an obligation
00:05:23to pay and share DBH of
00:05:26R70 trillion to 413
00:05:30regional governments. The Ministry of Finance itself has stated its readiness for the fund
00:05:33. Thus, there is no longer any reason not
00:05:36to immediately resolve this regional fiscal problem. A quick decision
00:05:40will also affect .
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00:09:03Thank you, viewers, you are still with us on Editorial Media Indonesia, and
00:09:07now we will listen to the opinion of Metro TV viewers first, Mas
00:09:10Jaka, we have Mr. Yunus. from Tanjung Selor
00:09:14Kaltara, Mr. Yunus, good morning.
00:09:17How do you view the urgency of the Central Government to directly address
00:09:20fiscal issues in the regions at this time?
00:09:24Thank you for the opportunity
00:09:37much hope for attention from the central government, because
00:09:40lately, with your permission, as ordinary citizens,
00:09:44but we also pay attention to the situation and conditions in the regions,
00:09:47especially for us who are in remote
00:09:50border areas, North Kalimantan bordering
00:09:53Malaysia. Many
00:09:56regions are complaining now about the fiscal
00:09:59conditions in the regions. Please, there should be
00:10:03clarity, there should be real efforts from
00:10:07the central government to help the regions
00:10:09so that they can build with... special
00:10:13power for the North Kalimantan province, with your permission,
00:10:17Bulungan Regency, North Kalimantan province, and also our
00:10:20brothers and sisters who directly border Malaysia, there is a
00:10:23road from Malinau Regency to
00:10:26the border area up to Long Bawan
00:10:30or in the Kerayan area, that must be built up
00:10:34to Long Bawan because they are also our citizens, only one mountain
00:10:38separates them from Malaysia. Malaysia is good on the other side, with your permission, I apologize
00:10:42for this, but they have difficulty with transportation.
00:10:45Examples of our current difficulties in regional fiscal matters
00:10:49are the high cost of logistics,
00:10:52distribution, and logistics, especially for our beloved brothers
00:10:56and sisters, the people who are in the border areas in
00:11:00Long Mawung and so on. So,
00:11:03please fix this road infrastructure.
00:11:07If there were already roads, it probably wouldn't
00:11:25understood your four points. Basically, you said there must be real encouragement and effort from the central
00:11:29government, and one of the complaints was regarding infrastructure, Mas Jaka, yes,
00:11:33yes, if for infrastructure, there are still
00:11:36many things that need to be improved. We are worried
00:11:40that if the fiscal situation in these regions is very stressed,
00:11:43where will the money come from? Where will the money come from to pay
00:11:47employees and P3K? Even that is difficult, let alone
00:11:50building infrastructure. There might be some,
00:11:53but it will definitely be more limited. So, in our opinion, this must
00:11:57really be given attention by the government, and we are a little
00:12:01relieved when the Minister of Finance said
00:12:04that at the latest next week there will be assistance
00:12:07of 20.5 trillion. This government assistance is not TKD,
00:12:11and then there will also be payment of underpayment
00:12:13of DBH, which is around
00:12:1670 trillion, which they say is still
00:12:20waiting for presidential approval. Hopefully,
00:12:23it will be executed soon, because
00:12:27these regions are already crying out, already
00:12:30in great difficulty to carry out operations
00:12:33and pay their employees. And this cannot
00:12:36be left unchecked continuously, because once again, the people will be affected.
00:12:40But Mas Jaka, how do you assess the efforts that have been made by the
00:12:44regions to cope with the pressure amidst budgetary constraints?
00:12:47Well, the regions are
00:12:50tightening their belts as much as possible, right? They
00:12:54even had plans
00:12:57to lay off P3K
00:13:01and reduce ASN salaries, but
00:13:04then the government forbade
00:13:07it, which is good, meaning so there won't be more
00:13:10unemployment. But the government shouldn't just forbid; the government must
00:13:14provide concrete and real solutions so that
00:13:18regional governments don't resort to layoffs or
00:13:20cut the salaries of employees, but also
00:13:24don't have difficulty paying all of that.
00:13:27And the only
00:13:30solution right now is to immediately disburse the
00:13:33DBH that has not been paid, at least the DBH.
00:13:37The DBH that is coming soon, this 20.5
00:13:41trillion assistance from the central government, not
00:13:44TKD, and in the short term, that's it. For the
00:13:47long term, for the years to come, I think it still needs
00:13:51to be calculated more carefully for the division of TKD and DPH.
00:13:54On the other hand, we also just saw the latest BPS
00:13:57release, Mas Jaka, that Indonesia's economic growth slowed in the second quarter.
00:14:01But why does it seem like the government isn't rushing to fix
00:14:05this problem? Yes, when the economy slows down,
00:14:09economic growth slows down, even if it's in line with
00:14:11expectations. If it's also affected
00:14:15by problems in the regions, we're worried
00:14:18it will slow down even more, because when regions
00:14:22can't move, when their economic
00:14:25wheels can't turn quickly because
00:14:28the wheels of government are also disrupted, that will impact
00:14:32the national economy, and we certainly shouldn't
00:14:35let that happen. That means we must really protect
00:14:38the regions so that the wheels of their development can
00:14:41turn as they should, and that is the government's job
00:14:45to ensure that. Yes, we are seeing a decline
00:14:49from the first quarter to the second quarter. Many say it's not
00:14:52significant, but no matter what, this is not an increase. Yes, that's right, that's right.
00:14:56This is actually
00:14:59a warning that must be really heard
00:15:02by the government that our economic pressure, especially from
00:15:06global factors, is very severe. The war has
00:15:09not ended yet, and
00:15:12the international global economy is also
00:15:15not yet truly stable, so there must be a truly
00:15:19comprehensive effort from the central government to ensure
00:15:23that we are not too affected by the very
00:15:27detrimental impacts. Yes, on the other hand, if we look at
00:15:30the three reasons for budget cuts in the regions: inefficiency, extravagance, and
00:15:34corruption, is there a guarantee from the central government that
00:15:38this will not happen ? Well, if
00:15:41we look at the facts, there have been several cases that
00:15:44indicate that there is extravagance and
00:15:47corruption, but we cannot
00:15:50make all of that just one
00:15:53measure. It is true that the government
00:15:57warns regions not to be extravagant anymore, not
00:16:00to be inefficient, and then
00:16:04to recklessly use the budget. Then it reduces
00:16:08TKD, and then it also
00:16:12slightly cuts DBH, but that's not the only thing
00:16:15that needs to be considered. We also need
00:16:18to think about how the wheels of regional government will turn. If
00:16:22all budgets are cut and the wheels of regional government do not
00:16:25turn, then again, the people are affected,
00:16:29and not
00:16:31only that, not only regional government operations,
00:16:35it can trigger conflict, you know. Yes, and it has already happened,
00:16:38and there have already been some regions that have protested,
00:16:42demoed in Tidore to Parepare. There were protests
00:16:45because they felt worried that there would be
00:16:49layoffs, and then there were also protests
00:16:52demanding the 13th month salary, and then
00:16:55there were also protests asking for their salaries
00:16:59not to be cut. If these
00:17:02things keep piling up and become an accumulation
00:17:06that we cannot control, that would be dangerous. So, we must
00:17:10pay attention to everything, everything must be thoroughly
00:17:14considered so that everything in the regions can
00:17:17run as it should, and then the central government
00:17:21will also not have too many additional problems, because right
00:17:25now the government has additional problems. When the government faces
00:17:27heavy national and international problems,
00:17:31but now it's burdened with new problems, namely the situation
00:17:33in the regions, and if it's not immediately resolved,
00:17:37the problems that the central government will face will continue to increase.
00:17:40It must be fast, it must be fast. Yes, Mas Jaka, we will discuss how
00:17:44fast and also what is the ideal next step that the central government can take
00:17:48in the future. Viewers, don't go anywhere, stay with us on Editorial Media Indonesia.
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00:20:27Thank you, viewers, you are still with us on Editorial Media Indonesia. We will
00:20:31continue our discussion with Mas Jaka. Mas Jaka, although DBH
00:20:34has not been paid yet, yesterday the Minister of Home Affairs stated
00:20:37that there will be an increase in the budget for 79
00:20:41regions. The TKD will be increased to ease the tension in the
00:20:45regions. Hopefully,
00:20:48regional governments need now is money,
00:20:51budget, because they are already in great difficulty to
00:20:55pay employees and to build infrastructure that is very
00:20:58much needed by the people. Yes,
00:21:02we encourage regional
00:21:05governments to be more creative, to be more
00:21:07innovative in getting new revenues,
00:21:10but in the current situation, I think they have already
00:21:14carried out extraordinary efficiency, and what
00:21:17they hope for right now is the only
00:21:20thing, perhaps even the only thing,
00:21:23which is funds from the center. That's why when
00:21:27there is a plan to immediately disburse 20 trillion
00:21:30in aid, and also to immediately disburse 70 trillion
00:21:34in unpaid DPH, that becomes a
00:21:38solution, a way to solve the problem, and it must
00:21:41be done immediately by the government. But in
00:21:44the future, regional governments should not
00:21:48always depend on the central government. They must be innovative,
00:21:52they must really have their own autonomy, right, Mas? They are autonomous.
00:21:56When they are already trusted to
00:21:59be a regional government, they should be
00:22:03able to meet their own needs, be
00:22:06independent. But the fact is that many regions are still
00:22:10fully, almost fully, dependent on the
00:22:12center. They must learn a lot from examples. For example, Jakarta already
00:22:16has creative financing, Jakarta bonds, and so on. Yes, yes, yes, but.
00:22:20But if we look at the regions that
00:22:23are, I'm sorry, in the remote interior areas,
00:22:26they are truly dependent on the central government. They have
00:22:30natural resources, but they cannot process them. For example,
00:22:33they also need to learn
00:22:37a lot about how to get a large PD.
00:22:41So, in the near future, the government must
00:22:44truly provide solutions in the form of
00:22:47real transfers.
00:22:50In the future, the government must truly provide
00:22:54guidance on how to get a sufficiently
00:22:56large PD, but with the condition of
00:23:00not burdening the people. We are worried that
00:23:04if problems like this are still allowed to drag
00:23:07on, then the regions will look for shortcuts,
00:23:10just raise taxes. In the end, what gets
00:23:13hit is still there are still some cases
00:23:16that we have already witnessed.
00:23:29that could shake stability in the regions, we don't want that to happen. So, we
00:23:33once again urge the central government to immediately disburse
00:23:36aid, immediately
00:23:39disburse the DPH that is the right of the regions
00:23:43so that regions no longer have difficulty paying employees, paying
00:23:47P3K, and no longer have difficulty in building infrastructure. Well, we
00:23:51hope that what we are discussing now will truly be heard and become
00:23:54an enlightenment for the central government to immediately address the fiscal problems in
00:23:57the regions. Thank you, Mas Jaka, for discussing
00:24:01with us on Editorial Media
00:24:02Indonesia. The central government must immediately
00:24:06resolve this regional fiscal problem. Priority programs must
00:24:10be achieved, and economic growth can move
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