Politics · Indonesia · 1 hr ago

Indonesia to Continue Awards Funding for Local Governments in 2027

Indonesia to Continue Awards Funding for Local Governments in 2027

Indonesia’s Home Affairs Minister, Muhammad Tito Karnavian, said support for local governments will continue in 2027.

The government has prepared Rp2 trillion, with Rp1 trillion for Home Affairs Ministry awards and Rp1 trillion in fiscal incentives from the Finance Ministry.

The awards recognize local governments that perform well in areas such as inflation control, waste management, poverty reduction and lowering unemployment or stunting.

In the 2026 competition, local governments were ranked in categories, with winning districts, cities and provinces receiving grants of Rp1 billion to Rp3 billion.

The funding is meant to reward local performance, but the government has not yet finalized how the 2027 scheme will work.

Tito said the government is still working out the implementation details.

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What people are saying

Muhammad Tito KarnavianIndonesia’s interior minister
By order of the President, announce that the fiscal incentive for the 2027 budget year remains in place.
via CNN Indonesia
We have completed it. We are just waiting for the third batch shortly.
via CNBC Indonesia