Deputy Finance Minister Juda Agung Says Q1 State Budget Spending Grows Significantly
Deputy Finance Minister Juda Agung emphasised the importance of synergy between fiscal, monetary, and real sector policies to maintain the momentum of national economic growth. He likened fiscal policy to the “wind” and banking to the “sail” that must work together so that Indonesia’s economic ship reaches its destination.
Juda revealed that the performance of the state revenue and expenditure budget (APBN) in the first quarter of 2026 showed very significant spending growth of 31.4% (year-on-year). This figure is far higher than the same period last year, which only grew by 1.4%. “Spending in the first quarter has already reached 21.2% of the total APBN allocation,” he said in an official statement, quoted on Tuesday, 28 April 2026.
He stated that the Ministry of Finance has changed the spending pattern to be more evenly distributed throughout the year so that it no longer accumulates in the fourth quarter. The aim, according to Juda, is for economic growth to be felt more quickly.
From the revenue side, he explained that taxes grew by 20.7% (year-to-date), driven by a surge in Value Added Tax (VAT) and Luxury Goods Sales Tax (PPnBM) of 57.7%. According to Juda, this growth is a strong signal that consumer activity and business sector transactions remain very vibrant.
In response to the rise in crude oil prices that once reached US$100 per barrel, Juda reaffirmed the commitment not to raise the prices of subsidised fuels to protect people’s purchasing power. To anticipate swelling subsidies so that the deficit remains below the 3% threshold, he said the government has taken various strategic measures.
One such measure is through sharpening priority programmes, such as efficiency in the Free Nutritious Meals (MBG) programme by eliminating meals on Saturdays and school holidays. One day of MBG efficiency is claimed to save up to Rp1 trillion in the budget. In addition, the utilisation of the Coretax system and optimising windfall taxes from coal and CPO commodities also form part of the government’s strategy.
Juda explained that the government is also mapping eight national clusters in the National Priority Work Programme (PKPN), ranging from food sovereignty, downstreaming of strategic industries (such as semiconductors and the national motor), to energy independence (B50 and Bioethanol B20). The Ministry of Finance is prioritising financing synergy between the APBN, the Danantara investment management agency, and the private sector.