{
    "success": true,
    "data": {
        "id": 1992828,
        "msgid": "central-government-spending-reaches-100-billion-up-29-1789987857",
        "date": "2026-09-21 13:12:56",
        "title": "Central Government Spending Reaches $100 Billion, Up 29%",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's central government expenditure rose by 29% to Rp 1.79 quadrillion during the first eight months of 2026. This surge was primarily driven by increased energy subsidies and compensation payments to state-owned enterprises such as PLN and Pertamina to ensure cash-flow stability.",
        "content": "<p>Central Government Spending Reaches $100 Billion, Up 29%<\/p>\n<p>Jakarta. Central government spending reached Rp 1.79 quadrillion\n($100.6 billion) in the first eight months of 2026, up 29% from a year\nearlier, as expenditures accelerated across government programs and\nenergy subsidies and compensation increased.<\/p>\n<p>The Finance Ministry said spending by ministries and government\nagencies reached Rp 912.4 trillion as of Aug.\u00a031, while non-ministerial\nspending totaled Rp 879.1 trillion.<\/p>\n<p>Ministry and agency spending included Rp 259 trillion in personnel\nexpenditure, Rp 389 trillion in goods and services, Rp 159.8 trillion in\ncapital expenditure and Rp 104.5 trillion in social assistance.<\/p>\n<p>Non-ministerial expenditure included pension payments, subsidies and\ngovernment compensation associated with regulated fuel and electricity\nprices.<\/p>\n<p>Subsidy and compensation payments reached Rp 331.4 trillion through\nAugust, with the government now making monthly payments to state\nelectricity company PLN and energy company Pertamina.<\/p>\n<p>That represented a substantial increase from Rp 218 trillion during\nthe same period of 2025, comprising Rp 149 trillion in subsidies and Rp\n68.6 trillion in compensation.<\/p>\n<p>\u201cCompensation payments are now made monthly, and subsidies are also\npaid monthly to PLN and Pertamina,\u201d Finance Minister Suahasil Nazara\nsaid Friday.<\/p>\n<p>\u201cThis is intended to give PLN and Pertamina greater cash-flow\nflexibility so they can continue supplying goods whose prices are\nregulated by the government, including subsidized products,\u201d he\nadded.<\/p>\n<p>The Rp 331.4 trillion in subsidy and compensation spending through\nAugust was about 52% higher than the Rp 218 trillion recorded a year\nearlier.<\/p>\n<p>Energy subsidy and compensation spending is sensitive to movements in\ncrude oil prices and the rupiah exchange rate, as well as consumption\nvolumes for subsidized fuel, liquefied petroleum gas and\nelectricity.<\/p>\n<p>Higher oil prices resulting from global geopolitical tensions can\ntherefore increase the government\u2019s energy subsidy burden, particularly\nwhen combined with a weaker rupiah.<\/p>\n<p>Indonesia faced similar pressures in 2022 after Russia\u2019s invasion of\nUkraine, when surging global energy prices sharply raised the cost of\nmaintaining regulated domestic fuel and electricity prices.<\/p>\n<p>Non-energy subsidy spending, meanwhile, has been affected primarily\nby higher fertilizer subsidy payments.<\/p>\n<p>Suahasil said the government would continue using subsidies and\ncompensation to maintain supplies of goods sold at regulated prices and\nsupport broader economic activity.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/central-government-spending-reaches-100-billion-up-29-1789987857",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}