State Budget Accelerates! State Spending Reaches Rp1,791 Trillion, Up 29% in August 2026

The Ministry of Finance has recorded that total state expenditure reached Rp1,791.5 trillion up to August 2026. This figure represents a 29% increase year-on-year, although it currently stands at 56.9% of this year’s state budget target of Rp2,295.7 trillion.

Finance Minister Suahasil Nazara explained that the increase was partly influenced by the rise in spending by Ministries and Agencies (K/L), which grew by approximately 33% year-on-year to Rp912.4 trillion from the previous Rp686 trillion. According to Ministry of Finance data, this amount represents 60.4% of the 2026 target. This growth was driven by government projects and other field activities.

“This means that government projects and activities on the ground have grown by 33%. This is a good performance,” said Suahasil during the APBN KiTA press conference at the Ministry of Finance on Friday (18/9/2026).

Suahasil explained that the acceleration in Ministry and Agency spending indicates that programmes and activities that have received budget allocations are beginning to be implemented. She emphasised that the government intends for K/L allocations to be utilised promptly.

“We certainly want that once the state budget is prepared and allocations are provided to Ministries and Agencies, those allocations are used. We do not want the allocation to be provided only for the activities not to be carried out,” she said.

In more detail, the majority of K/L spending came from goods expenditure, which rose by 67.5% to Rp389 trillion. Personnel expenditure also surged by 21.7% to Rp259 trillion, while capital expenditure recorded an increase of 14.3% to Rp159.8 trillion. Meanwhile, social assistance (bansos) expenditure saw a slight increase of 3.4% year-on-year to Rp104.5 trillion.

The Ministry of Finance also noted that non-K/L expenditure was recorded at Rp879.1 trillion, up from Rp702.8 trillion during the same period last year. This figure is equivalent to 53.6% of this year’s state budget target. Notably, non-K/L expenditure includes subsidy payments, fuel and electricity compensation, and civil servant pension payments.