Central Government Spending Grows 63 Per Cent by February 2026

Central government spending realisation through 28 February 2026 reached Rp346.1 trillion or approximately 11 per cent of the total 2026 State Budget (APBN). According to Deputy Finance Minister Suahasil Nazara, this figure demonstrates year-on-year growth of 63.7 per cent compared to the same period last year.

“Central government spending has disbursed Rp346.1 trillion,” he stated during the APBN press conference in February 2026 at the Ministry of Finance office in Jakarta on Wednesday, 11 March 2026.

Suahasil noted that the realisation includes ministerial and institutional spending, which by February 2026 totalled Rp155 trillion or equivalent to 10.3 per cent of the 2026 APBN ceiling of Rp1,510.5 trillion. This spending was driven by implementation of various government programmes, including the free nutritious meal programme and distribution of various social assistance schemes.

According to Suahasil, social assistance distributed includes several programmes such as national health insurance contribution subsidies, food staple cards, the Family Hope Programme (PKH), and Indonesia Smart Card for Higher Education (KIP Kuliah).

Regarding employee expenditure, the realisation recorded Rp45.1 trillion or 12.6 per cent of the budget ceiling. This figure increased compared to the realisation in the same period the previous year, which was Rp36.3 trillion.

He explained that the increase in employee spending was influenced by the recruitment of approximately 355,000 new civil servants. Additionally, there was acceleration of holiday allowance payments for non-civil servant education staff whose status changed to civil servant.

The government also disbursed holiday allowances totalling Rp24.7 trillion or approximately 45 per cent of the total allocation of Rp55 trillion to approximately 6 million recipients. Recipients include central and regional civil servants, TNI and police members, and retirees. Pension payment realisation itself reached Rp36.6 trillion for approximately 3.7 million recipients.

For goods expenditure realisation of Rp67.6 trillion or approximately 9.6 per cent of the APBN, the increase in goods spending was primarily driven by implementation of the free nutritious meal programme. From the total realisation, the free nutritious meal programme distribution reached Rp39 trillion. School Operational Assistance Funds totalled Rp4.8 trillion, health worker incentives of Rp2.2 trillion, health services through technical implementing units of Rp1.7 trillion, and food stabilisation programmes of Rp0.9 trillion.

Meanwhile, social assistance expenditure realisation reached Rp27 trillion or approximately 16.6 per cent of the 2026 APBN ceiling. According to Suahasil, the increase in social assistance spending was influenced by acceleration of distribution of several programmes at the beginning of the 2026 budget year. These included acceleration of the Indonesia Smart Card for Higher Education programme distribution in the first semester and acceleration of the Family Hope Programme distribution in the first quarter of this year.

Various social assistance programmes that have been distributed include national health insurance contribution subsidies totalling Rp7.7 trillion for 96.7 million participants, the Family Hope Programme totalling Rp7 trillion for 9.4 million recipient families. Additionally, the food staple card totalling Rp10 trillion for 16.7 million recipient families, and the Indonesia Smart Card for Higher Education totalling Rp2 trillion for 175,800 university students.