SPEKTRA Strengthens Regional Fiscal Capacity to Navigate Global Challenges

Global economic uncertainty is placing increasing pressure on Indonesia, with impacts extending to regional economic growth and the delivery of basic services. Strengthening subnational fiscal planning and budgeting capacity is critical to ensure that local governments can respond effectively. The implementation of Regional Government Fiscal Training Strategy (SPEKTRA), by the Directorate General of Fiscal Balance (Direktorat Jenderal Perimbangan Keuangan/DJPK) of the Ministry of Finance, supported by the SKALA Program –the Australia–Indonesia Partnership for the Acceleration of Basic Services—is a direct response to this need. 

The SPEKTRA Training of Facilitators Program is part of the “Better with DJPK” initiative, an effort led by DJPK to build capacity in regional transfer management and local economic governance. As part of this initiative, SKALA supports the preparation of SPEKTRA and SAJAK (Satu Jam Bersama DJPK/One Hour with DJPK) episodes, which provide platforms for learning and knowledge exchange amongst stakeholders. 

Held in Bogor and Jakarta from 2–5 June 2025, the training carried the theme: “Aligning the Regional Macroeconomic Framework and Fiscal Policy Guidelines (KEM–PPKF) with the General Budget Policy and the Priorities and Interim Budget Ceiling (KUA–PPAS).” This theme reflects the mandate of Law No. 1 of 2022 on Financial Relations between Central and Local Governments (UU HKPD), which calls for greater fiscal policy harmonisation across levels of government to ensure that basic services are funded and delivered as a shared responsibility. 

The program brought together 59 echelon III and IV officials from 27 subnational governments, primarily representing Bappeda, DPKAD, and APIP (Inspectorates). Participants were selected based on administrative eligibility and their performance in a competitive selection exam jointly developed by the Financial Education and Training Agency (BPPK) and DJPK. 

At the closing session of SPEKTRA, Director General of Fiscal Balance, Askolani, emphasised the tangible impacts of global disruptions and the need for adaptive, more coordinated fiscal responses across all levels of government. 

“Through SPEKTRA, participants can become agents of change in their respective regions, with a deeper understanding of global and regional challenges that influence fiscal policy. We cannot drive development transformation in isolation. Collaboration between central, local, and village governments is key. Our fiscal transmission is becoming stronger, from ministries and agencies, through transfers to the regions, and all the way to villages. Previously, most resources were concentrated at the centre; now, they are reaching communities. That is the strength of our development transformation,” said Director General of Fiscal Balance Askolani. 

Aligning Fiscal Policy Across Levels of Government 

The 2026 KEM–PPKF, developed in line with Law No. 17/2003 on State Finance, reinforces the importance of macroeconomic and fiscal coordination between central and subnational governments. It also reflects the national government’s commitment to accelerating progress towards the Golden Indonesia Vision 2045. Alignment between national and subnational development planning is critical to achieving this long-term goal. 

SPEKTRA is relevant to the ongoing preparation of the 2026 Local Government Work Plans (Rencana Kerja Pemerintah Daerah/RKPD) across Indonesia. The RKPD serves as the basis for preparing the KUA–PPAS and the local budget (APBD) and must therefore be aligned with the KEM–PPKF as the key fiscal reference. SPEKTRA aims to strengthen subnational governments’ technical capacity in fiscal management so they can translate national development priorities into integrated budget policies. 

“July marks the start of the KEM–PPKF and KUA–PPAS alignment process. We encourage SPEKTRA participants to share the knowledge gained during the training with technical teams at the provincial and regency levels. This will help ensure the KEM–PPKF is embedded from the earliest stage of the RKPD process,” said DJPK’s Director of Regional Financing and Economy Adriyanto. 

Innovating for Greater Impact 

SPEKTRA is part of the Government of Indonesia’s broader strategy to build a more responsive and equitable fiscal system. The program is supported by SKALA through technical assistance, capacity-building, and collaboration across levels of government. 

“The Government of Australia appreciates DJPK’s commitment to advancing fiscal reform through more inclusive and equitable governance, especially in improving basic service delivery at the local level. Aligning central and local policy helps national fiscal implementation become more effective, while also enabling regional voices to shape national decisions. SPEKTRA is a significant innovation that connects national-level strategy with on-the-ground implementation,” said Minister Counsellor for Governance and Human Development at the Australian Embassy in Jakarta, Tim Stapleton. 

SPEKTRA participants are expected to champion fiscal reform in their regions by strengthening local technical and strategic capacities. This first cohort will play a pivotal role in advancing fiscal transformation across Indonesia’s 514 districts and cities and help build a more inclusive and equitable future. 

Watch the full SPEKTRA closing session video at: