Tito Urges Regional Authorities to Accelerate Budget Expenditure Realisation for Economic Stimulus

Domestic Affairs Minister (Mendagri) Muhammad Tito Karnavian has urged all regional government authorities (Pemda) to accelerate the realisation of regional budget expenditures (APBD) in order to stimulate the national economy.

He emphasised that government expenditure is the primary instrument in driving the national economic engine whilst simultaneously mobilising the private sector.

“Because government spending is the main spending, in addition to enabling money circulation, it stimulates the private sector,” Tito explained in his statement on Monday (9/3/2026).

He made this statement during a Coordination Meeting on Inflation Control, combined with an Evaluation of Regional Government Support in the Three Million Houses Programme at the Riau Islands Provincial Government Office Auditorium on Monday (9/3).

Tito explained that ideal regional financial management is characterised by high revenue accompanied by high expenditure realisation, allowing money to circulate among the public and driving economic growth. To this end, he gave special appreciation to regions that have successfully managed regional finances under these ideal conditions.

One such region is West Java Province, which recorded revenue realisation of 16 per cent and expenditure of 15 per cent.

Conversely, Tito regretted that several regions have achieved quite high revenue but have not been optimal in realising their expenditures. This has resulted in APBD funds that ought to be used for development instead remaining largely idle or deposited in banks.

“Well, if revenue is high but expenditure is low, we are thankful to have savings, but low expenditure means money circulation moves slowly,” he said.

Specifically for Riau Islands Province, Tito appreciated the success of local authorities in recording year-on-year economic growth of 7.89 per cent. This achievement far exceeds the average national growth rate of 5.39 per cent in the fourth quarter of 2025.

Furthermore, the inflation rate in February 2026 on a year-on-year basis in the province has also proven well-controlled, at 3.54 per cent.

“This is quite good, well-controlled. And the month-to-month inflation in Riau Islands Province is also quite good,” he concluded.