More Than Just Regional Transfers, TKD Supports Salaries of 4.3 Million Civil Servants and Public Services

JAKARTA, KOMPAS.com - Transfers to regions (TKD) are not only used to finance various local government programs but also to support the salaries of around 4.3 million civil servants (ASN) in the regions.

Finance Minister Suahasil Nazara stated that TKD disbursements have reached Rp 504.3 trillion as of August 2026.

This amount has been distributed to support various local government needs, including paying civil servants’ salaries and public services.

"TKD expenditure performance has reached Rp 504.3 trillion disbursed according to the TKD allocation," Suahasil said at the APBN KiTa press conference held at the Ministry of Finance building in Jakarta on Friday (18/9/2026). Read also: DPD: Regional Transfer Funds Are More Than Budget, They’re an Economic Driver

Suahasil explained that TKD disbursement continues to be pushed forward alongside improving local government budget absorption and output achievements.

One of the supporting measures is increasing the allocation of the General Allocation Fund (DAU) and Revenue Sharing Fund (DBH), both partially used to support the payment of civil servants’ salaries in the regions.

"We will continue to monitor this and ensure timely disbursement so local governments can keep running their activities," Suahasil said.

Beyond supporting payroll, TKD is also directed at ensuring equitable public services across regions.

The government is focusing on its use in sectors such as education, health, and infrastructure.

In education, TKD funds support various programs, including equality programs for students, Teacher Professional Allowances (TPG), School Operational Assistance (BOS), and Operational Assistance for Early Childhood Education (BOP PAUD).

In the health sector, TKD supports the strengthening of 50 regional general hospitals (RSUD).

In infrastructure, TKD finances projects including the construction and expansion of drinking water supply systems and road maintenance.

As of August 2026, TKD disbursements have reached Rp 504.3 trillion, equivalent to 72.8 percent of the initial ceiling set in the 2026 State Budget of Rp 693 trillion.

However, the TKD ceiling increased this year as the government allocated additional funds for regional needs.

The government allocated an additional Rp 10.6 trillion for disaster response in Sumatra.

It also added Rp 18.9 trillion for non-disaster needs.

With these additions, the total TKD allocation for 2026 now stands at Rp 715.34 trillion.

"Some local governments reported several challenges that needed addressing, so Rp 18.9 trillion was added for non-disaster needs, formally stipulated in Minister of Finance Decree No. 198 of 2026. Therefore, the current TKD allocation is Rp 715.34 trillion," Suahasil explained.

Using this updated ceiling, the Rp 504.3 trillion disbursed by August 2026 represents about 70.5 percent of the total Rp 715.34 trillion allocation.

The government has also changed the distribution mechanism for teacher allowances.

Allowances that were previously distributed quarterly are now provided monthly.

This change also encourages TKD disbursement because the funds for teacher allowances can now be distributed more regularly.

Suahasil said the government will continue to ensure timely TKD disbursements so local governments can carry out various activities and public services for their communities.