PORTALJABAR, BANDUNG CITY - West Java Governor Dedi Mulyadi revised his initial projection of a potential deficit in the 2026 West Java Regional Budget (APBD) of Rp5.7 trillion. According to Mulyadi, after reconciliation, the potential deficit in the 2026 West Java APBD is smaller, at Rp3.4 trillion.

The potential deficit is caused by several factors, one of which is the unpaid tax revenue sharing funds from the central government to the West Java Provincial Government from 2023 to 2026.

Another factor is the unmet cigarette excise target this year. Furthermore, electric cars are exempt from motor vehicle tax.

"Finally, the deficit from Rp5.7 trillion could be reduced to Rp3.4 trillion," said KDM, Dedi Mulyadi's nickname, Friday (11/9/2026).

The deficit was also caused by the implementation of massive development that reached remote areas in West Java.

This potential Rp3.4 trillion deficit will be addressed by applying for a loan from PT Sarana Multi Infrastruktur (SMI), a financial management company under the Ministry of Finance. The debt will be repaid using profit-sharing funds from the central government.

"We applied for a loan from PT SMI, and the Ministry of Finance paid because we have outstanding receivables," said KDM.

The loan application plan is still under consideration, as the West Java Provincial Government's financial capacity needs to be assessed first. If the West Java Provincial Government's cash reserves are sufficient, a loan application may not be necessary.

WEST JAVA PUBLIC RELATIONS
Head of the Communication and Information Service of West Java Province
Adi Komar