All Spending Components Greener, August 2023 APBD Realization Increased

Sri Mulyani, the Indonesian Minister of Finance, noted that regional government spending from the Regional Revenue and Expenditure Budget (APBD) reached Rp609.24 trillion in August 2023. This figure is up 5.2% year-on-year (yoy) compared to Rp578.88 trillion in August 2022.

This APBD spending realization has absorbed 47.67% of the allocated budget of Rp1,278.15 trillion until the end of 2023.

There are two categories of APBD spending: by type and by function. According to the Ministry of Finance's records, all components of spending in both categories showed an increase.

For spending by type, the largest amount was allocated to employee salaries, reaching Rp248.51 trillion in August 2023. This is a 1.1% yoy increase from Rp245.69 trillion in the previous year.

Next is goods and services spending, which reached Rp163.32 trillion, a 6.4% yoy increase from Rp153.40 trillion in the previous period.

In terms of capital expenditure, it was recorded at Rp57.98 trillion. This type of spending increased significantly by 15.2% yoy from Rp50.33 trillion previously.

"This is due to the increase in capital expenditure for roads and bridges, buildings, medical equipment, office equipment, and households," said Ani, as she is known, in a press conference on the State Budget, Wednesday (20/9/2023).

Other spending in this category reached Rp139.43 trillion, up 7.7% yoy from Rp129.46 trillion previously. This category includes financial assistance, regional tax revenue sharing, and grant spending.

For spending by function, the largest amount was allocated to health, reaching Rp99.61 trillion. This is a 3.2% yoy increase from Rp96.51 trillion previously.

Next is economic spending, which reached Rp81.85 trillion, up 7.8% yoy from Rp75.92 trillion previously. This represents the largest growth in the functional spending category.

Meanwhile, social protection spending reached Rp6.43 trillion, up 6.3% yoy from Rp6.05 trillion previously.

The following is a list of spending by type and function in the APBD for August 2023 and August 2022:

Spending by Type:

* Employee Salaries
August 2023: Rp248.51 trillion
August 2022: Rp245.69 trillion
* Goods and Services
August 2023: Rp163.32 trillion
August 2022: Rp153.40 trillion
* Capital Expenditure
August 2023: Rp57.98 trillion
August 2022: Rp50.33 trillion
* Other Spending
August 2023: Rp139.43 trillion
August 2022: Rp129.45 trillion

Spending by Function:

* Health Spending
August 2023: Rp99.61 trillion
August 2022: Rp96.51 trillion
* Economic Spending
August 2023: Rp81.85 trillion
August 2022: Rp75.92 trillion
* Social Protection Spending
August 2023: Rp6.43 trillion
August 2022: Rp6.05 trillion

(See also: [Regional Governments that Spend Wisely and Control Inflation Receive a Bonus of Rp1.83 Trillion](https://databoks.katadata.co.id/datapublish/2023/10/04/pemda-pintar-belanja-hingga-kendalikan-inflasi-dapat-bonus-rp183-t))