Home Affairs Ministry: Rp503 Billion Budget Reallocation in Deli Serdang Is Lawful

DELI SERDANG | INDATANEWS.COM - Indonesia's Ministry of Home Affairs has reaffirmed that the Deli Serdang Regency Government's decision to reallocate Rp503 billion in budget funds for disaster management does not violate any legal provisions. The ministry stated that the measure has a clear legal basis, allowing regional administrations to reallocate budget funds under emergency conditions and when urgent action is required.

The clarification was delivered by Rikie, Director of Regional Budget Planning at the Ministry of Home Affairs, represented by Fernando H Siagian, Head of Subdirectorate for Regional Budget Planning Region I. Fernando made the statement during a consultation meeting held in Jakarta on Thursday, October 1, 2026.

The meeting was attended by Deli Serdang Inspector Edwin Nasution; Yeti Sembiring, Head of the Regional Planning, Development, Research and Innovation Agency (Bappedalitbang); Suparno, Head of the Water Resources, Roads, Bridges and Construction Agency (SDABMBK); and Faisal Rahman, Acting Head of the Environmental Agency.

During the meeting, Fernando explained the applicable laws and regulations governing regional budget reallocation procedures. He particularly highlighted the provisions that apply when regional administrations face disasters and must take immediate action.

"No, there is no legal defect. Please refer again to Government Regulation No. 12 of 2019, Article 69, which governs emergency and urgent situations," Fernando said.

The Ministry of Home Affairs' explanation also clarifies the legal basis for the budget reallocation carried out by the Deli Serdang Regency Government. As a result, the allocated funds can continue to be used for disaster management in accordance with applicable regulations, even when the regional administration faces time constraints and must respond swiftly.

Budget Reallocation Based on Government Regulation No. 12/2019

Fernando explained that the Rp503 billion budget reallocation was related to disaster management requirements in three provinces: Aceh, North Sumatra and West Sumatra. The measure was also connected to the central government's decision to restore previously reduced financial transfers to regional governments, known as Transfer ke Daerah (TKD).

Under these circumstances, regional administrations need to adjust their budget allocations to meet the financial requirements of disaster management. Fernando stressed that existing regulations explicitly provide regional governments with the flexibility to reallocate budget funds when emergencies or urgent situations arise.

He explained that, in such circumstances, regional administrations do not have to wait for the formal process of amending the Regional Revenue and Expenditure Budget (APBD) before carrying out a budget reallocation. However, they remain obligated to notify the Regional House of Representatives (DPRD). This notification is part of the required accountability and legislative oversight procedures.

According to Fernando, the DPRD has an oversight role in monitoring the use of budget funds reallocated by regional administrations for disaster management. In addition, the expenditure must comply with applicable technical guidelines to ensure that its implementation remains within the legal framework.

"Therefore, notifying the DPRD is sufficient. The Regional House of Representatives neither needs to approve nor reject the measure. It will subsequently be incorporated into the amendment of the Regional Revenue and Expenditure Budget," he said.

This mechanism allows regional administrations to respond to urgent needs without disregarding the legislature's oversight responsibilities. Regional governments must continue to inform the DPRD about budget reallocations, while the legislative body retains its authority to monitor how the funds are used.

Fernando also reminded the Deli Serdang Regency Government that responsibility for the use of reallocated budget funds remains with the respective regional head. The administration must subsequently incorporate the measure into the amendment of the regional regulation governing the APBD.

Regional Budget Amendments Are Not Mandatory

In addition to explaining the legal basis for budget reallocation, Fernando addressed the fact that no agreement had yet been reached on the amendment of Deli Serdang's Regional Revenue and Expenditure Budget (Perubahan APBD/P-APBD).

He explained that existing regulations do not require regional administrations to amend their APBD every fiscal year. This means regional governments can continue implementing their programs and activities based on the previously approved budget, even if no budget amendment is adopted during the current fiscal year.

However, this situation can create difficulties when regional administrations face new responsibilities and expenditures that were not originally included in the budget plan. In particular, activities arising from needs that could not have been anticipated at the beginning of the fiscal year can be difficult to accommodate within the existing budget without an amendment.

For this reason, amendments to the regional budget play an important role in adjusting expenditure plans to developments and actual requirements during the fiscal year. This is particularly relevant because regional administrations can face various challenges at any time that require immediate responses, including disasters and other emergency situations.

Nevertheless, Fernando clarified that the absence of an agreement on the P-APBD amendment does not automatically bring regional government operations to a halt. The Deli Serdang Regency Government can continue using the previously approved APBD as the basis for implementing its programs and activities.

Reallocated Funds Must Be Used for Their Intended Purpose

Fernando also reminded the Deli Serdang Regency Government that reallocated budget funds must be used exclusively for their designated purpose, namely disaster management.

He stressed that regional administrations must not use funds allocated for disaster management to finance other expenditures unrelated to disaster response. The use of these funds must reflect actual needs on the ground and comply with the relevant technical implementation guidelines.

As an example, Fernando said regional administrations are not permitted to use budget funds allocated for disaster management to purchase vehicles that are unrelated to disaster response operations.

This clarification is particularly important to ensure that budget reallocations are implemented in accordance with their original objectives. In addition to securing the necessary financial resources for disaster management, regional administrations must ensure that all expenditures are administratively accountable and comply with applicable laws and regulations.

Regarding the deadline for discussions on the regional budget amendment, Fernando explained that if the regional administration and the DPRD fail to reach an agreement by September 30, 2026, the regional government will not enact an amendment to the regional regulation governing the APBD.

In that situation, the Deli Serdang Regency Government will continue using the previously approved APBD as the basis for managing its finances during the current fiscal year.

The Ministry of Home Affairs' explanation provides clarity on the legal and administrative procedures governing budget reallocations in emergency situations. It also underscores the responsibility of regional administrations to ensure that public funds are managed properly and used for their designated purposes. The Deli Serdang Regency Government must ensure that the allocated Rp503 billion genuinely supports disaster management and is spent in accordance with applicable regulations. (IDNC)

REPORTER: Edi Saputra | EDITOR: Fik Sagala

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