TEMPO.CO, Jakarta - Indonesian Minister of Home Affairs Tito Karnavian revealed the economic conditions of the four new autonomous regions of the four provinces in Papua during a working committee meeting with the House of Commission II. He stated that the revenue targets of most of the new provinces in Indonesia's easternmost region are still relatively low.
He stated that ideally, regional governments should have reached a revenue target of over 40 percent by June of this year. Based on data collected by his ministry, only Central Papua Province has achieved a revenue of 48 percent. Meanwhile, the three new provinces of Central Mountain Papua, Southwest Papua, and South Papua have only recorded 14 percent, 17 percent, and 23 percent, respectively.
In addition to revenue targets, Tito also pointed out that these four new provinces in Papua have absorbed very little funding. He cited the absorption of funds by Central Papua, which is only at 15 percent, despite having a revenue of over 40 percent.
"The problem is the plan to replace heads of departments, so the money is being held at the provincial level," said Minister Tito at the Parliament complex, Senayan, Jakarta, on Wednesday, July 2, 2025.
He urged that the funds received by regional governments from the central government should not be held. Tito requested that these funds be spent, thus circulating money to the public.
Tito then gave an example of the situation in Central Mountain Papua, where spending exceeds the revenue target. "This has resulted in a deficit; perhaps they have taken the remaining funds from last year," he said.
He speculated that the issues in Central Mountain Papua are due to the unfulfillment of the distribution criteria set by the Ministry of Finance. He said the lack of fulfillment of these distribution criteria is caused by competency issues within the regional governments.
"So, the spending in all four DOPs in Papua is very low. Southwest Papua has a revenue of 17 percent, with spending at 11 percent. This means more is used for employee spending, but we are worried that it has not yet reached the community," said the retired police general.
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