Jakarta, July 2 -- The Budget Committee of the Indonesian House of Representatives (Banggar DPR RI) has stated that the regional transfer funds (TKD) policy in the 2027 State Budget Draft (RAPBN) will focus on increasing regional welfare.

The committee agreed to set the 2027 TKD ratio at between 2.55 percent and 2.79 percent of the gross domestic product (GDP).

"The 2027 TKD policy is aimed at encouraging effective and efficient regional spending to accelerate economic growth and welfare in the regions," Deputy Chair of the committee Wihadi Wiyanto said during a plenary session here on Thursday.

He emphasized that the funds do not only serve to fulfill local governments' financing needs, but also act as a crucial instrument to strength...