Deputy Finance Minister reveals Q1 2026 spending realisation grows 31.4%

Jakarta (ANTARA) - Deputy Finance Minister Juda Agung revealed that the realisation of state spending in the first quarter of 2026 grew rapidly, by 31.4% year-on-year (yoy), reaching Rp815 trillion.

Juda stated that the spending realisation this year is quite rapid compared to previous years.

“In this first quarter, spending has already reached 21.2% of the (APBN target). Compare that to last year when spending was only 17.1% (equivalent to 17.1% of the APBN target) and the growth was only 1.4%,” said Juda at the Bank Indonesia Head Office, Jakarta, on Monday.

In detail, central government spending was recorded at Rp610.3 trillion (19.4% of the APBN target), with growth of 47.7% (yoy). Meanwhile, transfers to regions reached Rp204.8 trillion (29.5% of the APBN target), declining by 1.1% (yoy).

On the other hand, state revenues reached Rp574.9 trillion, up 10.5% (yoy), equivalent to 18.2% of the APBN target.

Tax revenues reached Rp462.7 trillion (17.2% of the APBN target) or grew by 14.3% (yoy). Meanwhile, Non-Tax State Revenues (PNBP) were recorded at Rp112.1 trillion (24.4% of the APBN target) or down 3% (yoy).

With this spending and revenue performance, the APBN deficit for the first quarter of 2026 reached Rp240.1 trillion or 0.93% of gross domestic product (GDP).

On the same occasion, Juda also stated that national economic growth in the first quarter of 2026 is estimated to grow by 5.5% (yoy), based on projections from the Ministry of Finance.

Juda is optimistic that this projection can be realised in line with the acceleration of government spending and the positivity of several domestic consumption indicators, such as those reported by the Mandiri Spending Index (MSI).

He added that Value Added Tax (PPN) and Luxury Goods Sales Tax (PPnBM) also experienced a significant increase of 57.7% yoy to Rp155.6 trillion, indicating positive economic activity through consumption and business transactions.

“The strengthening trend has indeed occurred since September in the fourth quarter last year. There was a slight weakening in March, particularly in viewing expectations for future economic conditions, which weakened, of course this I think is the impact of the war in the Middle East,” said Juda.