State Spending Surges: 355,000 New Civil Servants Appointed, Free Nutritious Meal Programme Disbursed

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa stated that state spending reached Rp 1,365.4 trillion by the end of May 2026, representing a 34.4% year-on-year (yoy) increase. In detail, spending by ministries and agencies (K/L) experienced the highest growth, surging 58.9% to reach Rp 517.7 trillion by the end of May 2026. Purbaya explained this spending increase was part of an effort to optimise expenditure from the beginning of the year. “We want spending to be evenly distributed throughout the year, not just in the fourth quarter,” Purbaya explained during the APBN KiTa press conference on Friday (5/6/2026). Within ministry and agency spending, growth occurred across almost all expenditure categories, including personnel spending, goods spending, capital spending, and social assistance spending. The highest growth was recorded in goods spending, which soared 114.9% to a level of Rp 209.3 trillion by the end of May 2026. This goods spending was driven by the implementation of the Free Nutritious Meals (MBG) programme. According to data from the Ministry of Finance, the disbursement of MBG spending reached Rp 86.6 trillion. Another notable point in the presentation was that the Ministry of Finance recorded personnel spending of Rp 155.1 trillion, an increase of 25.2%. According to Purbaya’s presentation, this increase was driven by the appointment of 355,000 new civil servants and the acceleration of non-civil servant educator allowance payments. “This demonstrates the President’s strategy to ensure spending is timely and targeted for the economy,” he stated.