Government's Revenue Sharing Debt to Regions Reaches Rp83.58 Trillion

Background and Financial Implications

The Indonesian government is facing a significant financial obligation to regional governments, with the Revenue Sharing Fund (DBH) arrears reaching Rp83.58 trillion as of 2024. This substantial amount is detailed in the Minister of Finance Regulation (PMK) Number 120 of 2025. The arrears are categorized into two main components: Rp43.30 trillion in tax revenue sharing arrears and Rp40.28 trillion in natural resource revenue sharing arrears.

Financial Breakdown and Context

The total arrears of Rp83.58 trillion represent the difference between the realization of state revenue and the actual distribution to regional governments. This financial obligation highlights the complexity of fiscal management between the central and regional governments. Additionally, the government has recorded Rp13.32 trillion in overpayments of DBH, indicating the intricacies involved in revenue sharing mechanisms.

Policy and Future Implications

The revelation of such a significant arrears amount raises questions about the efficiency of the current revenue-sharing mechanism and its impact on regional government finances. The Ministry of Finance's acknowledgment of both underpayments and overpayments suggests a need for improved fiscal management and possibly a review of the existing DBH system to prevent future discrepancies.