During his two years in power, President Prabowo Subianto has continued to undermine regional autonomy. Instead, he has restored the centralization of power in the central government, or in his own hands. This centralization has not only reinforced the authoritarian character of his administration but also disrupted public services. Regional governments have lost their independence to manage their own affairs and are struggling to keep up with the President's demands.
The erosion of regional autonomy is evident in the President's policy of cutting budget transfers to regional governments. This year, regional transfers amount to just Rp650 trillion, down from Rp919.9 trillion in 2025. Regional governments with weak fiscal capacity – which account for 493 of the country's 546 regions, or 90 percent – will undoubtedly struggle to provide basic services such as education and health care. Far from building infrastructure, hundreds of regions are even scrambling to pay the salaries of government employees under work agreements, known as PPPK.
The root cause of the cuts to regional transfers is Prabowo's flagship free nutritious meal (MBG) program, which is consuming Rp229.75 trillion this year. Yet the MBG program has had no significant impact on regional economic growth, despite the President's claims to the contrary. Instead, the project has become a bonanza for politicians, businesspeople, law enforcement officials, and military personnel. Some are close associates of the President, including former National Nutrition Agency Chief Dadan Hindayana, who has been named a suspect in an MBG corruption case.
Another of Prabowo's flagship programs, the Red and White Village Cooperatives (KDMP), has also cut funding at the village level. Village funds, which totaled Rp71 trillion in 2025, have fallen to Rp60.87 trillion this year. Without deliberations involving public participation, most of the funds are being used to build KDMP facilities on village-owned land. Village governments and residents can only watch from the sidelines, as the cooperatives are built and managed by the military and Agrinas Pangan Nusantara.
The centralization of power, including through budgetary policies, could become a ticking time bomb for Prabowo's administration. Dissatisfaction among regional governments and local communities could trigger conflict and division. In Aceh, for example, the flag of the Free Aceh Movement flew in various locations ahead of the August 17 Independence Day celebrations. Public dissatisfaction with Prabowo's performance is now relatively high. An early October 2026 survey by Saiful Mujani Research and Consulting found that Prabowo's approval rating stood below 45 percent.
A country as vast as Indonesia, with problems as complex as its own, cannot be governed through centralized power. Regional autonomy is, in fact, key to improving public welfare and bringing services closer to people in remote areas. Stripping regional governments of their authority through Prabowo's flagship projects not only violates the Constitution but also demonstrates the government's failure to fulfill citizens' basic rights.
Prabowo could learn from former President Suharto, who was also his father-in-law. After more than 30 years of centralizing power and rejecting broad regional autonomy, Suharto failed to deliver prosperity and social justice to the public. The concentration of power under Suharto instead produced an undemocratic and deeply corrupt government. This pattern is becoming increasingly apparent under Prabowo's administration.
– Read the complete story in Tempo English Magazine
Source: https://en.tempo.co/read/2122436/regional-autonomy-on-its-last-breat