Indonesian Political, Business & Finance News

Purbaya Explains Why Education Budget Is Below 20 Percent

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Economy

Finance Minister Purbaya Yudhi Sadewa has explained the reason the education budget allocation appears to have fallen below 20 per cent of total state spending. He stated that from the initial planning stage, the government had designed the education budget to exceed the 20 per cent threshold mandated by the constitution. However, the percentage decreased because total state expenditure swelled due to emergency needs in other sectors, such as disaster management in Aceh and other regions, rather than being diverted to programmes like the Free Nutritious Meals initiative. Purbaya made these remarks in Yogyakarta on Thursday, 16 July 2026.

He explained that the surge in emergency funding requirements, particularly for disaster management, was the main cause of the decline in the education budget’s percentage. “The nominal value of the education budget has not been reduced, even though its proportion against the total state budget appears smaller,” Purbaya said. He added that the allocated education funds had also not yet been fully absorbed by the relevant ministries.

Purbaya noted that the government faces challenges when it must make sudden budget adjustments. He gave an example: if the government adds Rp 100 trillion in spending for urgent matters like disasters, the education budget must also be increased proportionally to maintain the 20 per cent mandate. “This mechanism is not always easy to anticipate because the ministry or agency managing education may not be ready to absorb a massive additional allocation in a short time,” he explained.

Amid scrutiny over the declining percentage, Purbaya urged that the discussion should not focus solely on the figure. He emphasised that the government is now prioritising the effectiveness of spending to ensure it delivers tangible impact. He pledged that future budget designs will maintain the education allocation at a minimum of 20 per cent or higher, while carefully balancing the financing needs of other sectors.

View JSON | Print