West Java Regional State Budget Surplus Rp 22 Trillion, Purbaya Checks Facts on the Ground
Finance Minister Purbaya Yudhi Sadewa made an unannounced visit to the West Java Regional Office of the Directorate General of Treasury in Bandung on Monday (24/8/2026). During the inspection, Purbaya sought to ensure that the state budget is not merely absorbed on paper, but genuinely serves as a driver of economic activity and public welfare.
The visit was conducted to directly review the implementation of the state budget in West Java up to the end of July 2026. The results show that the fiscal performance of the province with the largest economy in the country remains resilient amid global uncertainty.
Data from the West Java Treasury Office shows the regional state budget recorded a surplus of Rp 22.02 trillion through the end of July 2026. The surplus was supported by state revenue reaching Rp 85.61 trillion, or 45.41% of the target, while state expenditure was realised at Rp 63.59 trillion, or 57.02% of the ceiling.
“Every rupiah of the state budget must keep working, not just be recorded as a realisation figure, but truly provide tangible benefits to the public,” Purbaya said in his statement.
On the revenue side, state revenue grew 6.81% compared with the same period last year. Tax revenue reached Rp 81.30 trillion, an increase of 7.35% year on year. Taxes were the main support, with realisation of Rp 63.84 trillion, growing 10.41% annually. Meanwhile, customs and excise revenue reached Rp 17.46 trillion.
The manufacturing sector remains the backbone of West Java’s tax revenue. Its contribution reached Rp 30.60 trillion, or nearly half of the province’s total tax revenue.
On the expenditure side, state spending realisation contracted 1.45% year on year. However, spending by ministries and agencies surged 28.86% to Rp 26.61 trillion. The most striking increase occurred in capital expenditure, which grew 115.37% compared with July last year to Rp 3.11 trillion. This acceleration shows the government is beginning to push development and public service provision through productive spending.
Meanwhile, the distribution of transfers to regions and village funds reached Rp 36.98 trillion, or 59.82% of the ceiling. The breakdown is Rp 35.46 trillion for transfers to regions and Rp 1.52 trillion for village funds.
Purbaya stressed that the success of the state budget is not measured solely by absorption rates. According to him, the state budget must be present in the form of economic activity capable of driving businesses, creating jobs, and improving public welfare.
“We want to ensure that the state budget in West Java does not stop at budget absorption reports, but is present in the form of economic activity, business support, development, and improved public welfare,” he asserted.
One piece of evidence of the state budget’s role can be seen in support for the government’s priority programmes. The Free Nutritious Meals programme in West Java has been running in 27 regencies and cities through 6,794 nutrition service units and reaching 14.68 million beneficiaries.
In addition, the state budget also supports the Housing Financing Liquidity Facility programme, the Red and White Village/Sub-district Cooperatives, People’s Schools, food and energy security, and financing for micro, small, and medium enterprises through People’s Business Credit and Ultra Micro financing.
Through July 2026, People’s Business Credit distribution in West Java reached Rp 23.24 trillion to 357,300 debtors. Ultra Micro financing has reached Rp 1.31 trillion for 226,400 debtors.
The state budget performance is in line with West Java’s economy, which remains expansive. In the second quarter of 2026, West Java’s economy grew 5.73% year on year and 2.25% compared with the previous quarter. At the same time, inflation remained under control at 2.72% in July 2026. West Java also recorded a trade surplus of US$13.79 billion during January-July 2026.
According to Purbaya, the combination of fiscal support, strong domestic demand, and price stability forms an important foundation for regional economic resilience. Therefore, the government will continue to optimise the state budget as an instrument to maintain purchasing power, support the business world, and encourage sustainable economic growth.
“What we are ensuring is that the state budget is managed optimally, on target, and able to serve as a catalyst for regional and national economic growth,” he concluded.