Finance Minister Explains Why Education Budget Realisation Fell Below 20%

Minister of Finance Purbaya Yudhi Sadewa has shed light on the state budget dynamics that caused the realisation of the 2025 education budget to fall below 20 percent of total state spending. He explained that from the initial planning stage, the government had committed to designing an education allocation above the 20 percent minimum threshold to meet constitutional mandates. However, the percentage decrease was triggered by a surge in overall state expenditure due to emergency needs in other sectors, such as the handling of disasters in Sumatra and Aceh. He stated the decline was not caused by funds being diverted to the free nutritious meal programme (MBG).

“The design was for the education budget to be over 20 percent, but when disasters hit Aceh and other areas, everything swelled,” Purbaya said in Yogyakarta on Thursday, 16 July 2026. The spike in emergency funding needs, especially for disaster management, was claimed to be the main reason the education budget’s percentage dropped. “So the percentage of the education budget fell. We didn’t even have time to disburse it to the Ministry of Education; that might be the main cause,” he added.

Although unplanned spending in other sectors increased the total state budget, Purbaya emphasised that the nominal value of the education budget was not reduced, even though its proportion appeared smaller. He added that the relevant ministries had not yet fully absorbed the allocated education funds. These factors combined to cause the percentage decline. Purbaya explained that the government faces challenges when making sudden budget adjustments. He gave an example: if the government adds Rp100 trillion in spending for other urgent needs like disasters, the education budget must also be increased by regulation to maintain the 20 percent proportional requirement.

“If I have to add Rp100 trillion elsewhere, the education budget must also rise to maintain the proportion,” Purbaya stated. He noted that this adjustment mechanism is not always easy to anticipate because the ministries or agencies managing the education sector may not be ready to absorb a massive additional allocation in a short time. “So that Rp100 trillion for disasters suddenly forces an increase in education spending due to the proportional obligation to the state budget, which is difficult to anticipate. And if it’s added directly to the education budget, sometimes they aren’t ready either,” the state treasurer said.

Facing scrutiny over the declining education budget percentage, Purbaya urged that the discussion should not stop at the percentage figure alone. The government is now focusing on the effectiveness of spending to ensure it delivers real impact. “The question should be how spending can improve the quality of education. Because the proportional obligation to the state budget is somewhat difficult to anticipate when other spending suddenly increases,” he said. Despite the dynamics in realisation, Purbaya assured that the government remains committed to the constitutional mandate of maintaining funding for this crucial sector. He pledged to ensure that future education budget plans will be at least 20 percent or higher from the planning stage, while carefully considering the balance of financing needs across other sectors. “Certainly, in the years to come, the education budget will be 20 percent or even more than what is budgeted. The design will always maintain the budget portion according to the provisions,” Purbaya concluded.