TKD Down, Mayor of Semarang ensures that priority programs continue

Jakarta – The Semarang City Government (Pemkot) is preparing to face fiscal challenges after the central government officially implemented a cut in regional transfer funds (TKD) in the 2026 fiscal year to IDR 442 billion. Responding to this policy, Semarang Mayor Agustina Vilueng said that the Semarang city government has formulated an adaptive fiscal strategy to maintain local financial stability. This was expressed by him on the sidelines of the groundbreaking ceremony for the Red White Village Cooperative Warehouse in West Lamongan I, Sampangan Village, Semarang City, today. “In principle, we follow every policy and national fiscal dynamics. Despite a decrease (TKD), the Semarang city government continues to adjust (regional fiscal space) and ensure that public services continue to run,” says Agustina in her statement, Friday (17/10). Scroll TO CONTINUE CONTENT He admitted that there was an adjustment in budget volume after TKD changed in the regional revenue and expenditure budget (APBD) from about IDR 2,078 trillion in 2025 to about IDR 1,635 trillion in 2026. This condition requires strengthening the Semarang efficiency strategies in the city efficiency and the local government by improving the local efficiency. sources of income to support development programmes. “We will further explore the potential of Semarang City, expand the local revenue base and organize regional assets to make it more productive. We will continue to take optimization steps so that Semarang City can become more fiscally independent and make a greater contribution to society,” he said. On this occasion, his party emphasized that regional priority programs will not stop. Agustina admitted she is optimistic that development planning for the next five years, which focused on strengthening human resources, food and the environment, economy, infrastructure and competitiveness, will continue. In fact, several regional policies are also aimed at supporting the President’s national program. Agustina Vilueng set priorities for the development of the city of Semarang every year for the next five years. In 2025, the focus will be on improving human resources by improving the quality of education, health and equitable social welfare. “In 2026, development will focus on food and the environment by strengthening the city’s sustainable food system and improving the quality of the environment. Meanwhile, in 2027, the Semarang city government will focus on the economic sector by developing tourism and a community economy based on superior regional products,” he said. He said that in 2028, infrastructure will be a priority program for the Semarang city government. This is realized by improving the city’s strategic infrastructure. Meanwhile, in 2029, strengthening competitiveness that supports the city’s economy will become a priority program for the Semarang City Government until the end in 2030, to realize Semarang City as an advanced, socially just, sustainable and inclusive economic center. “Regional development planning for the next five years as outlined in the RPJMD (Regional Medium Term Development Plan) will be carried out in phases, with continued attention to fiscal strength, and don’t forget, must prioritize efficiency, transparency and accountability in its management,” added Agustina. TKD are funds obtained from the State Budget and Expenditure Revenue (APBN) which are distributed to the regions and managed by the regional government. TKD includes general allocation funds (GAL), special allocation funds (SAF), profit sharing funds (RBF), village funds, special autonomy funds, special funds and fiscal incentive funds. Based on the results of discussions by the central government and the House of Representatives on the 2026 APBN, the total TKD for 38 provinces is IDR 693 trillion. This nominal value is lower than the TKD in the 2025 APBN of IDR 848.52 trillion. This efficiency policy through TKD adaptations is experienced by many regions in Indonesia, including the city of Semarang. This situation is a challenge for the Semarang city government to reduce dependence on central funds. The strengthening of PAD is a form of commitment to maintaining sustainable development with public services. “Let’s act sensibly. This is a process towards a more independent region,” he concluded. (acd/acd)