Politics · Indonesia · 1 hr ago
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.
Indonesia will continue providing awards funding to local governments in the 2027 budget year, Interior Minister Muhammad Tito Karnavian said.
The government has prepared Rp2 trillion for 2027, planned to be split equally between Interior Ministry grants and Finance Ministry fiscal incentives.
The funding announcement followed Tito’s report to President Prabowo Subianto on aid awarded through competitions between local governments.
In 2026, the Interior Ministry held its Outstanding Local Government Awards in three rounds across six regions.
Awards in the first round included grants of Rp3 billion, Rp2 billion and Rp1 billion for first-, second- and third-place winners.
- Who
- Interior Minister Muhammad Tito Karnavian announced the funding plan.
- What
- Indonesia will continue awards funding for local governments in 2027, with Rp2 trillion planned for grants and fiscal incentives.
- When
- The announcement was made on October 22, 2026, for the 2027 budget year.
- Where
- Jakarta. The announcement followed a national coordination meeting held at Jakarta International Expo Kemayoran.
- Why
- President Prabowo instructed Tito to announce that the 2027 fiscal incentive would remain in place.
This story does not have two clearly opposing sides.
The Interior Ministry held its Outstanding Local Government Awards in three rounds across six regions.
Tito announced after reporting to Prabowo that local-government awards funding would continue in 2027.
The government plans to allocate Rp2 trillion, divided equally between Interior Ministry grants and Finance Ministry fiscal incentives.
- Total planned 2027 budget
- Rp2 trillion
- Interior Ministry grants
- Rp1 trillion
- Finance Ministry fiscal incentives
- Rp1 trillion
- 2026 awards format
- Three rounds across six regions
- First-place award
- Rp3 billion
2 sources
What people are saying
By order of the President, announce that the fiscal incentive for the 2027 budget year remains in place.
We have completed it. We are just waiting for the third batch shortly.