Indonesia's 2024 State Budget Prepared at Rp3.325 Trillion, with Education Spending a Priority

The Indonesian government has prepared a State Revenue and Expenditure Budget (APBN) of Rp3,235.1 trillion for 2024. This represents an 8.6% increase from the 2023 APBN.

The budget comprises Rp2,467.5 trillion for central government spending and Rp857.6 trillion for transfers to regions (TKD).

"Central government spending will be directed towards improving the quality of human resources, which will consume a significant portion of the APBN budget," said Finance Minister Sri Mulyani during the handover of the Budget Implementation List (DIPA) at the State Palace, Jakarta, on Wednesday (29/11/2023).

Sri Mulyani, also known as Ani, stated that Rp2,259.5 trillion has been allocated for priority spending next year.

By sector, education is the top priority spending sector in 2024, with a budget of Rp665 trillion. This budget will be used for improving access to and the quality of education through the disbursement of PIP, KIP Kuliah, BOS, BOP PAUD, certifications and scholarships, as well as infrastructure in 3T regions.

The second largest allocation is for social protection, at Rp496.8 trillion. This budget will focus on the eradication of extreme poverty through the Family Hope Program (PKH) and the Sembako Card.

Infrastructure will receive Rp423.4 trillion in 2024. This will be used to support Indonesia's economic transformation and the completion of the construction of the New Capital City (IKN).

Spending on law and defense will be allocated Rp331.9 trillion for the procurement of main defense equipment (alutsista), support for the 2024 General Election security, and strengthening national resilience and security.

Furthermore, the government also prioritizes health, food security, and IKN development in 2024. The amounts are detailed in the accompanying graph.

(See also: Realization of Central Government Spending as of October 2023 Down 5.9%)