“This is excellent. Money is circulating well, and I’m confident the economy is moving,” Tito said during the Sumatra Regional Government Coordination Meeting in Batam on Sunday.
He commended Governor Ansar Ahmad’s leadership and the Riau Islands Financial and Asset Management Agency (BPKAD) for successfully managing revenue targets.
“The governor’s leadership is strong, with a 7 percent buffer between revenue and spending,” he added.
Riau Islands’ revenue is 44.92 percent local revenue (PAD) and 55.05 percent regional transfers (TKD). Tito cautioned about challenges ahead with TKD allocations in coming years.
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The central government and parliament agreed on Rp693 trillion in TKD funds for the 2026 draft budget, up from Rp650 trillion initially. Regions must strategize to maintain revenue amid possible TKD cuts.
“The first step is efficiency and stricter spending oversight. Regions need new revenue sources that don’t burden the public while engaging private sectors and MSMEs,” Tito said.
He urged use of central programs like the Free Nutritious Meals Program and Merah Putih Cooperative to boost local revenues.
“With three months left in 2025, regions must accelerate revenue realization,” he stressed.
Tito also called for creative efforts to boost PAD without burdening citizens, promoting private-sector partnerships including with the Chamber of Commerce.
He highlighted empowering regional-owned enterprises (BUMD) to maximize local revenue potential.
Related news: BUMDs should become pillars for regional revenue: Ministry
Translator: Primayanti
Editor: Rahmad Nasution
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