State expenditure realization in the South Sumatra region as of May 31, 2026, recorded a contraction of 3.96 percent year-on-year. According to data released by the South Sumatra Regional Office of the Directorate General of Treasury (DJPb), total absorbed expenditure reached IDR 15.56 trillion, or approximately 41.05 percent of the total set budget ceiling.
Head of the South Sumatra DJPb Regional Office, Rahmadi Murwanto, explained that this decline was significantly influenced by the slowdown in Transfers to Regions (TKD). Up to May 2026, TKD realization stood at IDR 10.16 trillion, reflecting a decrease of 15.9 percent compared to the previous year.
In contrast to the declining trend of TKD, central government spending recorded positive growth. The central government expenditure component rose by 31.03 percent, totaling IDR 5.4 trillion. This increase was driven by the acceleration of personnel expenditure, faster procurement of goods, and an increase in capital expenditure by vertical agencies.
Despite the contraction in TKD, fiscal authorities emphasized that the distribution of the General Allocation Fund (DAU) and Special Allocation Fund (DAK), both physical and non-physical, continues to be optimized. This measure was taken to ensure public services and operational activities at the local government level continue smoothly.
On the other hand, state revenue in South Sumatra showed an encouraging growth trend. By the end of May 2026, state revenue reached IDR 6.58 trillion, growing by 18.50 percent year-on-year. The tax sector was the largest contributor at IDR 5.13 trillion, which includes tax revenues as well as customs and excise.
