Harumbi Prastya Hidayahningrum, Jakarta – West Java Governor Dedi Mulyadi has responded to Finance Minister Purbaya Yudhi Sadewa's statement alleging that several regional governments, including West Java, have placed regional budget funds (APBD) in bank deposits.
Speaking after the 2025 Regional Inflation Control Coordination Meeting at the Home Affairs Ministry on Monday, Dedi said no such deposits were found in the province's financial records.
"I've checked directly. There are no funds stored in deposits. The minister should open the data and specify which regions actually placed their money there," Dedi said.
Earlier, Purbaya cited Bank Indonesia data as of October 15, 2025, showing 15 regions holding large sums in banks, including Jakarta Rp 14.68 trillion ($885.1 million), East Java Rp 6.8 trillion ($410 million), and West Java Rp 4.17 trillion ($251.5 million).
Dedi emphasized that not all regions face difficulties in spending their budgets. Many local governments, he said, have accelerated public spending to support community needs.
"Some regions manage their finances efficiently and spend them for the public good. The issue lies with those that don't, and those should be the ones highlighted," he said.
He also urged the central government to ensure transparency when publishing fiscal data to avoid negative perceptions that could harm regions performing well.
"It's unfair to generalize. Regions that manage their budgets properly could face unwarranted criticism, affecting their fiscal capacity," Dedi said.
Responding to public concern over reports of more than Rp 200 trillion in idle regional funds, Dedi called for the central government to release the detailed data.
"It would be better to disclose everything publicly, which regions still have idle funds, and in what form. That way, we avoid misleading narratives," he said, adding that transparency would also serve as recognition for regions managing their budgets efficiently.
"The central government should be fair. Not only criticize but also appreciate regions with good fiscal performance," he added.
Previously, Finance Minister Purbaya reported that local governments still held Rp 233 trillion ($14 billion) in bank accounts, consisting of Rp 134.2 trillion from regencies, Rp 60.2 trillion from provinces, and Rp 39.5 trillion from cities.
Home Affairs Minister Tito Karnavian later revised the figure to around Rp 215 trillion, citing administrative discrepancies, program adjustments under new regional leaders, and updates to the e-Catalog system as reasons for the difference.
The issue of idle regional funds has drawn scrutiny amid concerns it could slow local spending, which is considered crucial to sustaining economic growth and curbing inflation.