18 Central Java Regencies/Cities Receive Additional Funds Amid Salary Payment Challenges

Central Java's provincial government has announced that 18 of its regencies and cities will receive a combined Rp268 billion in additional funds from the central government. This financial injection aims to alleviate difficulties faced by local administrations in meeting their payroll obligations for civil servants.

The funds consist of Rp184 billion from the General Allocation Fund (DAU) and Rp83 billion from Revenue Sharing Funds (DBH). This allocation is a response to requests from regional governments that have struggled with budget shortfalls, particularly concerning employee salaries and benefits. Dwianto Priyongroho, head of the Central Java Provincial Financial and Asset Management Agency (BPKAD), confirmed the distribution, noting that the funds are specifically earmarked for covering salary and allowance needs.

“

Indeed, KMK (Minister of Finance Decree) 198 dated August 5, 2026, was issued to finance the salary and allowance needs throughout the regional governments. Specifically for Central Java, the allocation details are in each regional government's system. We have communicated, and indeed there is Rp268 billion divided among several regencies/cities.

Priyongroho explained that the additional funding is a realization of aspirations previously conveyed to the central government. He highlighted that many local governments, especially in Central Java, heavily rely on central transfers, which have seen significant cuts. In 2026, Central Java experienced a reduction of over Rp11 trillion in these transfers, impacting both the provincial government and its constituent regencies and cities. Despite these fiscal pressures, the additional funds are expected to help prevent failures in paying civil servant salaries, a critical function for regional administration.

“

So, if it's 30 percent, almost all regencies/cities are above 30 percent. Because the needs for basic services exceed 30 percent.