Indonesia Accelerates 2026 Budget Spending to Boost Growth
Indonesia Accelerates 2026 Budget Spending to Boost Growth
Oleh - Thiodor Wulandari
Editor - Ahmad Faisal
24 Feb 2026
Voice of Indonesia
RRI.CO.ID, Jakarta - Vice Minister of Finance Suahasil Nazara reported a strong performance of the 2026 State Budget (APBN) at the start of the year. As of January 2026, total state expenditure reached Rp227 trillion, marking a significant 25.7% increase compared to the same period last year.
The accelerated spending is expected to serve as a key driver of national economic growth in the first quarter of 2026, particularly by strengthening household consumption and infrastructure investment.
One major highlight of central government spending—amounting to Rp131.9 trillion—is the significant increase in social assistance and goods expenditure. Social assistance (bansos) realization reached Rp9.5 trillion, more than doubling January 2025’s Rp4.1 trillion. This surge was driven by the early disbursement of the first-quarter Family Hope Program (PKH), which began in January.
Meanwhile, the signature Free Nutritious Meals (MBG) program recorded Rp19.5 trillion in realization in January 2026—soaring dramatically from Rp45 billion in January 2025.
“As of 21 February 2026, the MBG program has reached 60.24 million beneficiaries through 23,678 Nutritional Service Units (SPPG) across Indonesia,” Suahasil stated.
The education sector remains a top priority, with Rp56.5 trillion realized from a total allocation of Rp769.1 trillion. The budget supports programs such as the Smart Indonesia Program (PIP), Indonesia Smart College Card (KIP Kuliah), professional allowances for teachers and lecturers, and School Operational Assistance (BOS).
The government also targets the construction of 104 new community schools and the revitalization of nearly 12,000 schools this year, backed by Rp17.6 trillion in funding.
On infrastructure, the government has allocated Rp434.8 trillion for 2026, focusing on food and energy self-sufficiency as well as connectivity. Strategic projects include dam construction, irrigation networks, new rice field development, and road and bridge projects under the Ministry of Public Works.
To maintain food price stability and supply, Rp22.7 trillion had been disbursed to Perum Bulog as of January 31, 2026, to absorb farmers’ unhusked rice and rice stocks.
Meanwhile, Transfers to Regions (TKD) reached Rp95.3 trillion. For disaster-affected areas in Sumatra—Aceh, North Sumatra, and West Sumatra—the government has eased disbursement requirements and prepared an additional Rp10.65 trillion allocation, set to be distributed gradually starting in late February 2026.
“The acceleration of spending reflects the APBN’s commitment to supporting economic growth while directly safeguarding public welfare,” Suahasil concluded.