Indonesian Political, Business & Finance News

Purbaya monitors ministry spending in Q1 to drive 6 per cent economic growth

| Source: ANTARA_ID Translated from Indonesian | Economy
Purbaya monitors ministry spending in Q1 to drive 6 per cent economic growth
Image: ANTARA_ID

Jakarta (ANTARA) — Finance Minister Purbaya Yudhi Sadewa has stated he will monitor the disbursement of ministry and institutional (K/L) spending in the first quarter of 2026 to pursue the 6 per cent economic growth target.

“I will be looking at whether any ministries or institutions are still slow,” Purbaya told reporters at the Ministry of Finance offices in Jakarta on Monday.

The Ministry of Finance has prepared a budget of Rp809 trillion for accelerated state expenditure in Q1 2026.

The budget covers the acceleration of the Free Nutritious Meals (MBG) programme at Rp62 trillion; festive allowances (THR) for civil servants, the military, and the police at Rp55 trillion; disaster rehabilitation and reconstruction in Sumatra at Rp6 trillion; and a stimulus package of Rp13 trillion.

The total direct injection amounts to approximately Rp136 trillion, excluding routine expenditure.

Additional momentum is also expected from seasonal factors such as the Lunar New Year and Eid al-Fitr holidays and collective leave, as well as the Work From Anywhere (WFA) policy.

On the supply and investment side, acceleration is being pursued through the construction of 30,000 Koperasi Desa Merah Putih (Red and White Village Cooperatives) worth Rp90 trillion, and the construction of 190,000 units comprising commercial housing, subsidised housing, and self-help housing renovation assistance (BSPS), totalling Rp20 trillion.

In addition, a groundbreaking ceremony for Danantara downstream projects worth US$7 billion, or approximately Rp110 trillion, is planned.

Accordingly, the total identified direct investment drive amounts to approximately Rp220 trillion.

Purbaya said the budget disbursement is expected to propel economic performance in Q1 2026.

“The projected growth for Q1 2026 is around 5.5 to 6 per cent. For full-year 2026, the state budget targets 5.4 per cent, but we will push towards 6 per cent as well,” Purbaya said.

According to Purbaya, ministry and institutional spending disbursement continues to progress, with average growth performing better than last year. He expressed confidence that government expenditure is moving in the right direction.

“I hope the state budget can continue to drive growth in this first quarter, so that the momentum built previously is not lost,” he said.

As a note, realised ministry and institutional spending as of 31 January 2026 reached Rp55.8 trillion, or 3.7 per cent of the target, representing significant year-on-year growth of 128.9 per cent.

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