Jakarta, IDN Times – The Governor of Bank Indonesia (BI), Perry Warjiyo, has clarified that the data concerning local government funds held in commercial banks originates directly from the official reports submitted by individual Regional Development Banks (BPDs). This statement comes as a direct response to the ongoing public debate surrounding discrepancies in financial data reported by central and regional governments. During a working meeting with the House of Representatives’ Commission XI on Wednesday, November 12, 2025, Warjiyo explained, “For data on local government accounts within BPDs, we receive it directly from the BPDs themselves. These reports are then forwarded to the Ministry of Finance.”
The controversy over idle local government funds first gained significant public attention when West Java Governor Dedi Mulyadi publicly challenged Finance Minister Purbaya Yudhi Sadewa. Mulyadi demanded transparency regarding alleged West Java Provincial Government funds amounting to Rp4.17 trillion, which were reported to be stagnating in various banks. However, subsequent internal investigations revealed no such funds were held in the form of deposits, adding a layer of complexity to the contentious issue.
For his part, Finance Minister Purbaya Yudhi Sadewa reiterated that the data on local government deposits in banking institutions ultimately originates from Bank Indonesia. He urged those questioning the figures to “just ask the Central Bank. That data comes from there. Perhaps he [the governor] should also investigate the possibility that his subordinates might have reported incorrectly. This data is derived from banking reports,” Purbaya asserted, directing inquiries towards BI as the primary source.
The core of the data discrepancy regarding local government funds in banks lies in the differing recording periods utilized by various institutions, specifically Bank Indonesia (BI) and the Ministry of Home Affairs (Kemendagri). According to BI’s records, the cumulative total of local government funds deposited in banks reached Rp233 trillion by September 30, 2025, with West Java Province alone accounting for Rp4.17 trillion of these deposits. In contrast, Kemendagri’s data presents a slightly lower figure: as of October 17, 2025, the total idle funds belonging to all local governments across the banking sector stood at Rp215 trillion, with the West Java Provincial Government’s share reported as Rp2.67 trillion.
Minister of Home Affairs Tito Karnavian elucidated that these variances are purely attributable to the differing timestamps of data collection and updates between BI and Kemendagri. He offered a concrete example: “For instance, the West Java Provincial Government’s funds, which amounted to Rp4.1 trillion as of August 2025—comprising Rp3.8 trillion from the regional government itself and Rp300 billion from Regional Public Service Agencies (BLUDs)—had decreased to Rp2.3 trillion by the end of September 2025, simply because a portion had already been disbursed for expenditures.” Karnavian further elaborated that such temporal disparities in data retrieval naturally lead to variations in inter-agency reports. “Thus, the figures are automatically different because the timings are different; a portion of the money has already been spent. Similarly, data from the Ministry of Finance and BI showing Rp2.33 trillion also depends on whether the period is August or September,” Tito clarified.
Amidst this ongoing discussion, Tito reaffirmed Kemendagri’s proactive stance, stating that the ministry is continuously urging local governments to accelerate their spending realization. This concerted effort aims to minimize the volume of idle funds held in banks, particularly as the fiscal year-end approaches, ensuring more efficient resource utilization across the regions.
