Finance Minister Accelerates Ministry Spending in February to Smooth Economic Impact Throughout Fiscal Year

Jakarta – Finance Minister Purbaya Yudhi Sadewa stated that the 85.5 per cent increase in Ministry and Agency (K/L) spending through February 2026 is designed to distribute the economic impact of government expenditure evenly throughout the fiscal year.

He explained that accelerating spending at the beginning of the year is an intentional approach to prevent a concentration of government spending at year-end, which frequently results in incomplete budget absorption.

Purbaya rejected suggestions that the spending surge is due to the larger number of ministries in the Red and White Cabinet. “It’s not (bloated due to more K/L). Rather, we have designed our spending to ensure the impact of government expenditure is distributed evenly throughout the year. At the beginning of the year, we push (K/L) to spend more quickly than last year,” Purbaya said at the Finance Ministry in Jakarta on Friday, 13 March 2026.

Ministry and agency spending increased 85.5 per cent year-on-year with realised spending of Rp 155.0 trillion, representing 10.3 per cent of the target. Non-K/L spending realised Rp 191.0 trillion or 11.7 per cent of the target, growing 49.4 per cent year-on-year.

As a result, central government spending (BPP) growth reached 63.7 per cent year-on-year, with realisation of Rp 346.1 trillion or 11.0 per cent of the target.

Adding the realised transfers to regions (TKD), which grew 8.1 per cent year-on-year with realisation of Rp 147.7 trillion or 21.3 per cent of the target, total state spending was recorded at Rp 493.8 trillion or 12.8 per cent of the target, representing a 41.9 per cent increase year-on-year.

State revenue collected reached Rp 358 trillion or 11.4 per cent of the state budget target of Rp 3,153.6 trillion, growing 12.8 per cent.

The state budget recorded a deficit of Rp 135.7 trillion or 0.53 per cent of gross domestic product (GDP) as of 28 February 2026, with the primary balance showing a deficit of Rp 35.9 trillion.