Kotabaru, South Kalimantan (ANTARA) - Kotabaru was among the regional government attended, when the South Kalimantan Provincial Government held a Focus Group Discusion (FGD) on regional fiscal strategy in response to the 2026 transfer fund policy.
The Regional Secretary of Kotabaru H Eka Sapruddin, who also attended, said the resource person offered two methods: increasing revenue and reducing spending. The first effort is definitely reducing spending to align with the existing revenue, but will also strive to increase revenue.
“We will definitely adjust the final budget ceiling accordingly based on the agreement with DPRD for pure budget (APBD),” he said in Kotabaru as reported on Monday.
If revenue decreases, spending automatically decrease, but strategic activities will be maintained.
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“The government will take steps to collaborate with the province to convey notes to the central government. Hopefully there will be no further cuts in the coming year,” he said.
Governor H Muhidin in his remakrs stated that the FGD is very crucial and strategic for the continuity of regional development in South Kalimantan.
"I urge all regional heads to reduce non-essential activities, such as official travel, grants and so on. Focus and focus on priority and strategic activities," he emphasized.
When implementing multiyears work programs, good administration is required and review regulations to determine whether DPRD's approval is sufficient or there are regulations requiring permission from ministries or specific institutions.
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Previously, the Ministry of Finance issued Letter No. S-62/PK/2025 dated September 23, 2025, concerning significant changes to the allocation of regional transfer funds.
The draft of 2026 regional revenue was projected Rp9.42 trillion, but then dropped to Rp7.42 trillion after the adjustments.
"So, specifically central transfer fund to regions have experience a very drastic decrease," said the Governor.
The Governor also informed the details on trasfer fund allocation to the regions, including for South Kalimantan the budget decreased from Rp4.5 trillion to Rp2.3 trillion, down Rp2.2 trillion (-48,36). Banjarmasin City's budget dropped from Rp1.4 trillion to Rp1 trillion, down Rp390 billion. Kotabaru District budget from Rp2.4 trillion, decreased by Rp692 billion to Rp1.7 trillion (-28,41%).
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