Indonesian Political, Business & Finance News

Pushing for 6 Per Cent Growth, Purbaya Closely Monitors First Quarter Spending Across Ministries

| Source: VIVA Translated from Indonesian | Economy
Pushing for 6 Per Cent Growth, Purbaya Closely Monitors First Quarter Spending Across Ministries
Image: VIVA

Jakarta — Finance Minister Purbaya Yudhi Sadewa has affirmed that his ministry will closely monitor the disbursement of spending by ministries and government agencies during the first quarter of 2026, in pursuit of the 6 per cent economic growth target.

“I will be looking at whether any ministries or agencies are still lagging behind,” Purbaya said at the Ministry of Finance in Jakarta on Monday, 23 February 2026.

The Ministry of Finance has prepared a budget of Rp809 trillion for accelerated state spending in the first quarter of 2026.

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

The total direct injection amounts to approximately Rp136 trillion, excluding routine expenditure. Additional momentum is 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 development of 190,000 units comprising commercial housing, subsidised housing, and self-help housing renovation assistance (BSPS), totalling Rp20 trillion.

In addition, groundbreaking ceremonies are planned for Danantara downstream industrialisation projects valued at US$7 billion, or approximately Rp110 trillion. Altogether, the total identifiable direct investment push reaches approximately Rp220 trillion.

Purbaya said the budget disbursement is expected to drive economic performance in the first quarter of 2026.

“The projected growth for the first quarter of 2026 is around 5.5 to 6 per cent. For the 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 the minister, ministry and agency spending disbursement continues to progress, with average growth rates better than last year. He expressed confidence that government spending is moving in the right direction.

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

Ministry and agency spending realisation 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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