Regional Governments Struggling with Budget, DPR Pushes for State Budget to Allocate IDR 700 Billion for PSU

JAKARTA, KOMPAS - The House of Representatives is urging the central government to allocate IDR 700 billion from the State Budget to cover the costs of the 2024 Regional Election re-voting (PSU). This is because regional governments are only able to prepare less than 30 percent of the PSU budget needs in 24 regions, which are estimated to reach IDR 1 trillion.

Based on data from the Ministry of Home Affairs (Kemendagri) presented by Deputy Minister of Home Affairs Ribka Haluk during a working meeting at Commission II of the House of Representatives (DPR) in Jakarta on February 27, 2025, there are 24 regions that will hold repeat elections (PSU). The estimated cost required to conduct the PSU in these 24 regions reaches nearly IDR 1 trillion.

In terms of funding, eight regional governments (pemda) stated that they were capable of financing PSU, while 16 other regional governments were either unable or still required financial assistance, whether from the province or the state budget (APBN). The regions facing budget difficulties for PSU include Papua Province; the regencies of Kepulauan Talaud, Buru, Pulau Taliabu, Pasaman, Empat Lawang, Pesawaran, Bengkulu Selatan, Serang, Tasikmalaya, Boven Digoel, Gorontalo Utara, Parigi Moutong; as well as the cities of Banjarbaru, Palopo, and Sabang.

The Chairman of Commission II of the House of Representatives, Rifqinizamy Karsayuda, in Jakarta, Sunday (2/3/2025), stated that based on the provisions of Law Number 10 of 2016 concerning the Election of Governors, Regents, and Mayors (Pilkada), the funding source for regional elections comes from the Regional Revenue and Expenditure Budget (APBD) of each region, both at the provincial and regency/city levels.

Nevertheless, the law states that if the funds owned by regencies/cities are limited, the provincial government and the central government can provide assistance through the provincial budget (APBD) or the state budget (APBN). "Thus, the APBD, including the APBN, can be used to support the implementation of voting in 24 regions, either fully or partially," he said.

Rifqizamy revealed that Commission II of the House of Representatives, together with the government and election organizers, has calculated the budget capacity of 24 regional governments that will hold re-voting (PSU). It turns out that these regional governments can only cover 30 percent of the total budget required for the re-voting (PSU).

For this reason, Commission II of the House of Representatives encourages the central government to cover the shortfall in PSU costs by allocating IDR 700 billion from the state budget (APBN). This is important so that the PSU, which is a decision of the Constitutional Court (MK), can be implemented on time.

"We are currently working on APBN support of approximately Rp 700 billion to ensure that the implementation of regional elections in accordance with the Constitutional Court's decision can be carried out according to the time set by the KPU," he said.

Rifqinizamy emphasized that Commission II of the House of Representatives, together with the Ministry of Home Affairs (Kemendagri) and the Ministry of Finance (Kemenkeu), will announce the matter during a working meeting scheduled to be held on March 10, 2025.

"God willing, the government through the Ministry of Home Affairs and the Ministry of Finance will agree to this and later we will announce it together at Commission II of the DPR during a joint working meeting with the Minister of Home Affairs and election organizers on March 10, 2025," he said.

Commission II of the DPR encouraged the central government to cover the shortfall in PSU costs by allocating IDR 700 billion from the APBN.

Deputy Chairman of Commission II of the DPR, Dede Yusuf, added that in principle, Commission II of the DPR has given a deadline of 10 days to the Ministry of Home Affairs and election organizers since the working meeting on February 27, 2025, to immediately coordinate with the Minister of Finance and the provincial government to discuss the problem of the PSU budget shortfall. Thus, it can be calculated how much budget the regional government has and how much total aid funds are needed from the APBN.

Dede reminded that Law 10/2016 has mandated that the PSU budget is a regional burden, and the central government can help it. "So (the mandate of the Law) must be implemented. Where the APBN budget option comes from, surely the Minister of Finance knows better," he said.

According to Dede, the government must quickly resolve the PSU budget issue. Don't let everything fall apart because it was prepared close to the PSU event. Later it will fall apart because

"This is what must be prioritized, the first PSU is 30 days since the Constitutional Court has determined it. March 26 if I'm not mistaken. There are those that are 60 days, 90 days, and 180 days later," he said.

Contacted separately, Deputy Minister of Home Affairs Bima Arya emphasized that within the next 10 days, the Ministry of Home Affairs will coordinate with 24 regional governments regarding the budget needs to hold PSU in their respective regions. If the budget is still lacking, the Ministry of Home Affairs will look at the ability of the provincial government to help cover the budget shortfall.

Bima explained that later, the budget could be taken from the remaining funds from the implementation of the regional elections at the General Election Commission (KPU) and the Election Supervisory Body (Bawaslu) at the provincial level. The central government and provincial government will also continue to coordinate so that the assistance of funds from the provincial government does not interfere with the implementation of priority programs or mandatory services in the province.

"Certainly everything has been taken into account, without impacting priority programs and mandatory services," he said.

If the entire budget is not there, then the lack of funds will be taken from the APBN. "If there is still a shortage, then it will be requested to the Ministry of Finance," said Bima.