Regulations

The finance minister is taking the precaution to verify local administrations' claims about a funding squeeze as regional transfers fell 11.2 percent yoy to Rp 357.4 trillion (US$20 billion) as of end June.

Finance Minister Purbaya Yudhi Sadewa speaks to someone off camera on Oct. 24, 2025, as he prepares to deliver his weekly press briefing at the Finance Ministry in Central Jakarta. (JP/Deni Ghifari)

Finance Minister Purbaya Yudhi Sadewa has asserted that, despite calls from several regional administrations to disburse outstanding revenue-sharing funds (DBH), a component of regional transfers, amid concerns over limited cash availability, the central government would release additional funds selectively.Purbaya declined to disclose the amount of additional transfers that would be provided, as the government was still verifying which regions were facing actual cash shortages before deciding on any disbursements.

He said the government did not want a repeat of a previous incident in which some regions claimed a funding shortfall even as the transferred money sat idle in bank accounts.