Ministry and Agency Spending Surges 40% in First Half of 2026, Driven by Free Nutritious Meals Programme

Government spending by ministries and agencies (K/L) surged 40% year-on-year in the first half of 2026, reaching Rp 658.9 trillion, equivalent to 43.6% of the full-year target of Rp 1,510.5 trillion. This marks the highest growth in four years, rebounding from a 3.46% contraction to Rp 470 trillion in the same period of 2025.

The significant increase was primarily driven by the implementation of the Free Nutritious Meals (MBG) programme, which accounted for Rp 98.8 trillion of the total spending. Other major contributors included social assistance programmes, infrastructure development, and the payment of holiday bonuses (THR) and the 13th-month salary for civil servants.

Breaking down the expenditure, goods spending reached Rp 267.4 trillion, a sharp rise from Rp 133.2 trillion in the first half of 2025. Within this category, the MBG programme absorbed Rp 98.8 trillion, followed by biodiesel incentives at Rp 20.1 trillion, health services for vertical technical implementation units (UPT) at Rp 7.8 trillion, and school operational assistance (BOS) for private schools at Rp 4.8 trillion.

Personnel expenditure rose to Rp 203.8 trillion, up 24.8% from the previous year, driven by the recruitment of 355,000 new civil servants and the accelerated payment of allowances and bonuses. Capital expenditure increased by 14% to Rp 109.4 trillion, with funds directed towards road and irrigation projects, machinery, and buildings. Social assistance spending saw a marginal increase of 0.4% to Rp 78.3 trillion, primarily funding the National Health Insurance (PBI JKN) for 96.7 million beneficiaries, the Sembako food aid card for 17.7 million families, and the Family Hope Programme (PKH) for 9.7 million families.