Home Affairs Minister Urges Regional Authorities to Accelerate Budget Spending
Jakarta – The Indonesian Home Affairs Minister Muhammad Tito Karnavian is urging all regional governments to accelerate the realisation of spending on their regional budgets (APBD) in order to stimulate the national economy.
He stressed that government spending is the primary instrument for driving the national economy and mobilising the private sector.
“Government spending is the main spending not only for money circulation but also to stimulate the private sector,” said the Home Affairs Minister in a statement in Jakarta on Tuesday.
The Minister explained that ideal regional financial management is characterised by high revenue accompanied by high spending realisation, enabling money to circulate throughout society and drive economic growth.
To this end, Tito has given special appreciation to regions that have successfully managed regional finances under these ideal conditions. One such region is West Java Province, which recorded revenue realisation of 16 per cent and spending of 15 per cent.
Conversely, the Home Affairs Minister also expressed regret that some regions had achieved relatively high revenue but had not optimally realised their spending. This has resulted in APBD funds that should have been used for development remaining largely idle or deposited in banks.
“When revenue is high but spending is low, well, it’s good to have savings, but low spending means money circulation is sluggish,” he said.
Specifically for Riau Islands Province, the Home Affairs Minister praised the regional government’s success in recording year-on-year economic growth of 7.89 per cent. This achievement far exceeds the national average growth rate of 5.39 per cent in the fourth quarter of 2025.
Moreover, inflation in the province in February 2026 on a year-on-year basis has also proven to be well controlled at 3.54 per cent.
“This is quite good and well controlled. And month-on-month inflation in Riau Islands Province is also quite satisfactory,” he said.