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DPD RI Requests Reduction of TKD Not Applicable to 3T Regions, Will Causing Regional Development to Stagnate

Vice chairman of the Indonesian House of Regional Representatives (DPD) RI Sultan B Najamudin requested that the budget cut for Central to Regional Transfers (TKD) be excluded in the Outermost Frontier and Disadvantaged (3T) regions.

This was conveyed by the Sultan following the statement of the Director of Regional Revenue at the Directorate General of Regional Financial Development of the Ministry of Home Affairs Hendriwan that the TKD budget for each region would continue to decrease.

Sultan said that the government’s efforts to encourage regional fiscal independence are part of the objectives of implementing regional autonomy. However, it needs to be applied carefully and measured according to the ability and fiscal endurance of each region.

“The government must also realize that the establishment of regional autonomy has the aim of decentralizing national development tasks. The regional government is an extension of the central government in bringing services closer to the community,” said the former Deputy Governor of Bengkulu. Bengkulu through his official statement on Wednesday, November 08, 2023. Without careful calculation, said Sultan,

TKD cuts will have an impact on the quality of public services. Because local governments tend to make budget efficient in many sectors.

“Especially in the 3 T regions which are still very vulnerable in terms of economic base and structure. We do not want the development process in the 3T areas to stagnate,” he said.

Sultan said that he strongly supports the government’s efforts to increase regional fiscal independence. Regional heads must have innovation in managing regional potential to increase the productivity of local revenue. Because fiscal independence is a barometer of the quality of the regional autonomy system that has been implemented over the past 20 years.

“It is time for the Government to re-evaluate the autonomous regions that are considered unable to develop themselves independently,” concluded Sultan