Yogyakarta. Sri Sultan Hamengku Buwono X, the Sultan and Governor of Yogyakarta, has expressed disappointment over the Rp 700 billion ($42 million) reduction in central government funding for the province, a senior official said on Thursday.

Under Indonesia’s proposed 2026 national budget, the central government will cut Yogyakarta’s special autonomy allocation from Rp 1.5 trillion to Rp 1 trillion and reduce other general budget transfers by Rp 167 billion, aligning the province’s funding with that of other regions.

The Sultan also objected to a new policy that changes how vehicle tax revenues are distributed among Yogyakarta’s four districts and the city, shifting from an equal distribution model to one based on local vehicle ownership and economic performance.

“Vehicle taxes will now depend on each district’s potential. That means Sleman will get the largest share, while revenues in Gunungkidul and Kulon Progo will decline. Previously, the system ensured equal distribution, but that has now been removed,” said Wiyos Santoso, head of the Yogyakarta Finance and Asset Management Agency.

According to Wiyos, the Sultan believes there should be a concrete mechanism to maintain fiscal balance among districts -- for example, through inter-district grants, where wealthier regions support less-developed ones.

“While other governors are mainly concerned about the size of the cuts, the Sultan is focused on fairness. Regencies like Gunungkidul and Kulon Progo are hit twice -- from reduced central aid and lower vehicle tax revenues,” Wiyos said.

The Sultan delivered his feedback directly to Askolani, Director General of Fiscal Balance at the Finance Ministry, during a meeting at the Yogyakarta Palace earlier this week.

Askolani said he appreciated the Sultan’s input, emphasizing that the budget cuts are part of a nationwide fiscal adjustment affecting all provinces.

“The Sultan’s suggestions are very valuable for us and will be taken into consideration for improving future policies,” Askolani said.

The Yogyakarta Special Region is Indonesia’s only province still governed under a hereditary monarchy system, with the Sultan serving as both traditional ruler and provincial governor. Its special autonomy status, granted under national law, recognizes the region’s historical role in Indonesia’s independence and allows unique administrative and fiscal arrangements.

The special autonomy fund -- similar in principle to those provided to Papua and Aceh -- supports governance, cultural preservation, and infrastructure development specific to Yogyakarta’s dual civil-monarchical structure.

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