Government Aggressively Allocates State Budget at the Start of the Year, Surging 31.4%

The government is pushing for accelerated state spending at the beginning of 2026 as a strategy to drive more even economic growth throughout the year.

Deputy Finance Minister Juda Agung revealed that state spending realisation grew by up to 31.4% year-on-year in the first quarter of this year. By 31 March, the government had disbursed Rp815 trillion, equivalent to about 21.2% of the 2026 State Budget (APBN).

“Well, in the first quarter, spending has already reached 21.2% of the APBN. 21.2%. Compare that to last year, when spending was only 17.1% and growth was just 1.4%,” Juda said at the National Policy Dialogue and Kick Off for the Acceleration of National Intermediation (PINISI) event on Monday (27/4/2026).

Not only state spending, but state tax revenues also recorded a 20.7% growth compared to the same period last year. With this combination, the budget deficit by the end of the first quarter stood at 0.93% of GDP.

Juda explained that the surge in spending is part of a change in the government’s strategy for managing state expenditure. Previously, spending tended to pile up at the end of the year; now, the government is starting to even it out from the beginning.

“Because we want to change the government’s spending pattern, the government’s spending pattern. Previously, the fourth quarter had the highest growth; now we’re trying to even it out,” he said.

Therefore, the Finance Ministry is targeting state spending in the second quarter at 26%, and similarly in the fourth quarter. This way, economic growth can occur more evenly each quarter.

“Previously, the fourth quarter had the highest growth; now we’re trying to even it out. First quarter 21%, second quarter target 26%, and 26% in the fourth quarter. So the aim is for economic growth to be even, quick, and occur in the same year,” he stated.