MEDAN | INDATANEWS.COM - The North Sumatra Provincial Government is optimistic that it can achieve the targeted revenue and expenditure realization under the 2026 Regional Budget (APBD). As of September 22, 2026, regional revenue realization had reached 69.80 percent, or approximately Rp8.9 trillion, out of the Rp12.8 trillion target.
The optimism comes alongside the acceleration of various provincial government programs, including infrastructure projects in several regencies and cities across North Sumatra. The provincial government continues to urge the relevant government agencies to accelerate program implementation so that the budget targets can be achieved in accordance with the established plans.
Acting Secretary of the North Sumatra Financial and Asset Management Agency, Frans Novendy Saragih, explained the latest development during a press briefing organized by the North Sumatra Information and Communications Agency at the lobby of the Dekranasda Building at the North Sumatra Governor's Office on Jalan Diponegoro, Medan, Thursday, September 24, 2026.
According to the North Sumatra Financial and Asset Management Agency, regional revenue realization as of September 22, 2026, had reached 69.80 percent, equivalent to Rp8.9 trillion of the total Rp12.8 trillion budget. Meanwhile, expenditure realization stood at 51.82 percent, or approximately Rp6.64 trillion, against the same Rp12.8 trillion budget allocation.
Regional Revenue Continues to Grow
Frans said the acceleration of budget expenditure was continuing, particularly to support the implementation of infrastructure projects in various areas. Several provincial government agencies are also implementing programs and activities that have already been included in the 2026 Regional Budget.
"Currently, our agencies are also carrying out infrastructure projects in the regencies and cities. We are optimistic that these projects will be completed soon," Frans said.
In addition to accelerating regional expenditure, the North Sumatra Provincial Government continues to optimize revenue from Regional Original Revenue (PAD). As of September 22, 2026, PAD realization had reached 59.15 percent, or Rp4.1 trillion, against a target of Rp6.9 trillion.
PAD comes from various revenue sources. Regional taxes provide the largest contribution, amounting to around Rp3.5 trillion. They are followed by regional service fees totaling Rp165 billion. Revenue from the management of separately administered regional assets reached Rp325 billion, while other legitimate PAD revenues stood at Rp101 billion.
The data indicate that the provincial government still has room to increase revenue through the end of the fiscal year. Through the relevant government agencies, the North Sumatra Provincial Government is implementing various measures to secure revenue while ensuring that expenditure is carried out in accordance with the approved programs.
Frans said the provincial government was also taking into account various revenue sources and opportunities to utilize budget allocations that could contribute to achieving the 2026 APBD targets. Accelerating implementation, he added, was an important part of maintaining a balance between regional revenue and expenditure realization.
2026 NORTH SUMATRA PAD REALIZATION: Acting Secretary of the North Sumatra Financial and Asset Management Agency Frans Novendy Saragih explains the development of 2026 APBD revenue and expenditure realization during a press briefing at the North Sumatra Governor's Office. (PHOTO: Fahmi Aulia)
Additional Transfer Funds Put Into Use
In addition to regional revenue, the North Sumatra Provincial Government has also begun implementing additional Regional Transfer Funds (TKD) amounting to Rp1.1 trillion. The additional funds are being prioritized for various needs, including post-disaster recovery as well as programs related to public services and development.
Frans explained that the additional TKD funds had been allocated to several strategic sectors. The education sector received Rp190 billion, healthcare Rp91 billion, infrastructure Rp274 billion, water resources Rp246 billion, agriculture Rp35 billion, and other sectors Rp26 billion.
The North Sumatra Provincial Government has instructed the agencies responsible for implementation to accelerate the utilization of these funds in accordance with the designated programs. This is considered important so that communities can benefit from the budget allocations as quickly as possible, particularly in areas directly related to basic services and infrastructure development.
In addition to construction projects, the funds are also supporting the education and healthcare sectors, agriculture, and water resource management. The provincial government is implementing the programs based on the established plans and schedules.
"The relevant agencies remain optimistic that implementation can proceed according to the schedule that has already been established," he said.
As various programs continue through the end of the fiscal year, the North Sumatra Provincial Government continues to see opportunities to achieve the 2026 budget realization targets. The government is also continuously monitoring program implementation across government agencies to prevent delays.
OPTIMIZING REGIONAL ASSETS: Frans Novendy Saragih explains measures taken by the North Sumatra Financial and Asset Management Agency to optimize previously unused regional assets so they can be utilized and become an additional source of Regional Original Revenue. (PHOTO: Fahmi Aulia)
Unproductive Assets Targeted to Increase PAD
Meanwhile, the North Sumatra Financial and Asset Management Agency is preparing measures to optimize regional assets that have not yet been utilized effectively. These assets, which are considered unproductive or currently unused, are expected to be put to productive use so that they can generate economic benefits while becoming an additional source of Regional Original Revenue.
The program to optimize these assets is currently being implemented by the North Sumatra Financial and Asset Management Agency. The provincial government is opening opportunities for the assets to be utilized by communities and businesses through partnerships conducted in accordance with applicable regulations.
The initiative is part of the provincial government's efforts to develop additional sources of revenue rather than relying solely on tax and fee income. Productive utilization of regional assets is also expected to increase the value and usefulness of government-owned property that has not yet made an optimal contribution to regional revenue.
"The Financial and Asset Management Agency is currently implementing a program to utilize unused assets so that they can be used by communities or businesses through cooperation with the provincial government and ultimately become a source of PAD revenue," Frans said.
The optimization of regional assets is being pursued alongside efforts to accelerate the realization of 2026 APBD revenue and expenditure. The North Sumatra Provincial Government aims to ensure that all government agencies complete their programs according to schedule so that allocated budget funds can generate tangible impacts on development and public services.
The development of APBD realization will remain under close monitoring through the end of the fiscal year. The North Sumatra Provincial Government is also urging all government agencies to maintain the quality of program implementation while ensuring that budget utilization remains consistent with established plans and applicable regulations. (IDNC)
REPORTER: Ahmad Zulfikar | EDITOR: Fik Sagala