Financial Relationships Between Central and Regional Governments Strengthened Through Harmonization of National Fiscal Policy

In 2022, the Indonesian Government introduced Law No. 1 of 2022 on Financial Relations Between the Central Government and Regional Governments (“ Law 1/2022 ”), which was aimed at establishing an effective and efficient allocation of national resources through the strengthening of financial relationships between the central and regional governments. [1] Following the introduction of Law 1/2022, the government has now decided to issue Regulation of the Government No. 1 of 2024 (“ Regulation 1/2024 ”) on the Harmonization of National Fiscal Policy (“ National Policy ”), which has been in force since 2 January 2024. [2]