The Reason Behind Prabowo’s Decision to Cut Regional Transfers

Jakarta – President Prabowo Subianto has raised concerns over the management of regional government budgets, which he said have not been used optimally to support development and public services.
Prabowo said the central government needs to ensure that state funds transferred to regional governments are used effectively and provide benefits to the public. This is one of the considerations behind the government’s management of Transfers to Regions (TKD).
“Sometimes it’s strange, the regional governments don’t use the money. We have evidence. It is kept in banks, there are various reasons. Or there are conflicts between the regent and the regional parliament. Between the governor and the regional parliament. So, we have already transferred the money, but it isn’t used,” Prabowo said in the “President Prabowo Answers” program released by the Government Communications Agency on Wednesday (September 16, 2026).
Prabowo also highlighted the development of basic infrastructure at the village level. He questioned why bridges in villages had not been built despite the government having provided funding to regional governments and villages.
“How long has decentralization been running? 25 years, right? We have allocated funds to every village. Rp1 billion. Over the past 10 years. Regional transfers have been made. Why have bridges in villages never been built? Even though the bridge only costs Rp400 million,” he said.
During the program, Prabowo questioned the effectiveness of funds transferred by the central government to regional governments.
He said budget policies should be oriented toward results and benefits for the public.



