Antara News·Indonesia·Friday, September 18, 2026 at 12:05 PM

Central government spending hits Rp1,791.5 trillion by August

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Imamatul Silfia, Resinta Sulistiyandari

Jakarta (ANTARA) - The government recorded central government expenditure realization of Rp1,791.5 trillion (US$98 billion) as of August 31, 2026, equivalent to 56.9 percent of the 2026 State Budget ceiling of Rp3,149.7 trillion (US$172.5 billion).

This realized figure represents a 29 percent increase compared to the same period in 2025, when spending stood at Rp1,388.8 trillion (US$76 billion).

Finance Minister Suahasil Nazara on Friday detailed the realization comprised of ministry/agency (K/L) expenditure of Rp912.4 trillion (US$49.9 billion) and non-K/L expenditure of Rp879.1 trillion (US$48.1 billion).

According to him, K/L expenditure realization reached 60.4 percent of the 2026 State Budget ceiling of Rp1,510.5 trillion (US$82.7 billion), a 33 percent increase compared to the realization in August 2025, which stood at Rp686 trillion (US$37.5 billion).

"Entering the final months of the year, I remind that K/L spending must remain efficient, yet priority must be given to expenditures that deliver maximum impact to the public," the minister said at the State Budget September 2026 edition press conference on Friday.

Meanwhile, non-K/L expenditure realization stood at Rp879.1 trillion (US$48 billion), or 53.6 percent of the Rp1,639.2 trillion (US$89.7 billion) ceiling. This figure represents a 25.1 percent increase from the Rp702.8 trillion (US$38.4 billion) recorded during the same period last year.

In further detail, personnel expenditure reached Rp259 trillion (US$14 billion) by the end of August 2026, or 72.3 percent of the ceiling, marking a 21.7 percent increase.

Personnel expenditure was primarily utilized for the recruitment of approximately 355,000 new civil servants (ASN) and the payment of allowances for non-civil servant educators.

Furthermore, expenditure on goods and services was recorded at Rp389 trillion (US$21.3 billion), representing 55.1 percent of the allocated budget, marking a 67.5 percent increase.

According to Nazara, this rise was primarily driven by the implementation of the Free Nutritious Meal (MBG) program with Rp131.3 trillion (US$7.1 billion), School Operational Assistance (BOS) funds for private schools of Rp10.1 trillion (US$553 million), biodiesel incentives with Rp21.4 trillion (US$1.1 billion), healthcare services provided by Technical Implementation Units/UPT with Rp11.3 trillion (US$619 million), and food stabilization measures with Rp3.3 trillion (US$180 million).

Meanwhile, capital expenditure reached Rp159.8 trillion (US$8.7 billion), or 56.3 percent of the allocation, growing by 14.3 percent; these funds were utilized to support connectivity and food security through infrastructure and irrigation network development.

Furthermore, key realizations included Rp43.1 trillion (US$2.3 billion) intended for the Ministry of Public Works, Rp44.6 trillion (US$2.4 billion) for the Ministry of Defense, Rp36.1 trillion (US$1.9 billion) for the National Police (Polri), and Rp10.4 trillion (US$569 million) for the Attorney General's Office.

Social assistance expenditure reached Rp104.5 trillion (US$5.7 billion), representing 64.3 percent of the allocation and marking a 3.4 percent increase.

This social assistance included the Family Hope Program (PKH) at Rp21 trillion (US$1.1 billion) for 10 million beneficiary families, the Basic Food Card program at Rp27.6 trillion (US$1.5 billion) for 17.6 million families, and the National Health Insurance Contribution Assistance (PBI JKN) at Rp30.9 trillion (US$1.6 billion) for 96.7 million participants.

Additionally, the government disbursed Rp10.7 trillion (US$586 million) for the Smart Indonesia Program (PIP) benefiting 15.6 million students and Rp9.7 trillion (US$531 million) for the Smart Indonesia Card (KIP) for Higher Education, benefiting 954,000 university students.

Followed by expenditure for social assistance, social rehabilitation, and disaster relief totaled Rp4.6 trillion (US$252 million).

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