Indonesian Political, Business & Finance News

Government Assures DPR Education Budget Remains at 20% of State Spending

| Source: CNBC Translated from Indonesian | Politics
Government Assures DPR Education Budget Remains at 20% of State Spending
Image: CNBC

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has affirmed the government’s commitment to maintaining the education budget allocation at a minimum of 20% of the State Revenue and Expenditure Budget (APBN), as mandated by the 1945 Constitution. The affirmation was delivered by Purbaya while responding to the views of DPR factions regarding the Draft Law on Accountability for the Implementation of the 2025 Fiscal Year APBN during the 25th DPR Plenary Meeting of the 2025-2026 Session at the Parliamentary Complex, Senayan, Jakarta, Tuesday (14/7/2026). Purbaya stated that the government understands the concerns of the PDI Perjuangan Faction, the Gerindra Party Faction, and the PKS Faction regarding the implementation of mandatory spending, particularly in the education sector. “Responding to the views of the PDIP Faction, the Gerindra Party Faction, and the PKS Faction concerning the implementation of mandatory spending, the government states that in accordance with the mandate of the 1945 Constitution, the state prioritises the education budget at a minimum of 20% of the APBN and from the APBD to meet the needs of national education provision,” Purbaya said in his speech. According to him, the 20% education budget allocation has been stipulated annually in the APBN Law and is distributed through three main channels: central government spending, transfers to regions, and education financing. “To implement this mandate, the education budget is set annually in the law on the APBN at 20%, which is divided into three pillars of spending: central government spending, transfers to regions, and education financing,” said the state treasurer. Purbaya stressed that the government continues to strive to improve the effectiveness and absorption of the education budget so that its benefits are increasingly felt by the public. “From year to year, the government is committed to optimising the realisation of the education budget. This is reflected in the increase in the percentage of education budget realisation,” he continued. He revealed that the realisation of the education budget shows an increasing trend from year to year. In 2025, the portion of education budget realisation was recorded at 19.1% of total state spending realisation. “The realisation of the education budget continues to increase from year to year, reaching 19.1% of state spending realisation in 2025, and in 2026 it is expected to be more optimal and continue to improve,” he added. The statement serves as the government’s affirmation amid DPR scrutiny of mandatory spending implementation, particularly to ensure the constitutional mandate regarding education is maintained while encouraging the improvement of Indonesia’s human resource quality in the long term.

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