Jakarta's 2026 Budget Revised Downward Following Central Government Funding Cut

Significant Reduction in Revenue Sharing Fund

The Jakarta government has officially approved a 2026 budget of Rp 81.3 trillion, marking a substantial decrease from the initial plan of Rp 95.3 trillion. This revision comes after the central government implemented a significant cut in the Revenue Sharing Fund (DBH) for Jakarta, amounting to Rp 15 trillion, as per the latest regulation issued by the Ministry of Finance.

Governor's Response to Funding Reduction

Despite the considerable reduction in funding, Jakarta Governor Pramono Anung has decided not to contest the decision. His rationale centers on maintaining focus on Jakarta's development and ensuring the quality of public services without engaging in political controversy. This approach demonstrates a strategic prioritization of governance over political posturing.

Implications for Jakarta's Financial Planning

The reduction in DBH has necessitated a significant revision of Jakarta's budgetary plans. The initial budget of Rp 95.3 trillion was substantially higher than the final approved amount of Rp 81.3 trillion. This adjustment reflects the challenges faced by regional governments in adapting to changes in central government funding policies. The situation highlights the complex dynamics between central and regional financial planning in Indonesia.