Central Government Spending Realization Only Reaches 88 Percent

The 2016 realization of central government spending reached only 87.9 percent, or Rp 1,148.6 trillion, of the target set in the Revised State Budget (APBN-P) of Rp 1,306.7 trillion. Besides falling short of the target, the 2016 realization of central government spending was also lower than the previous year's achievement of Rp 1,173.6 trillion. Due to sluggish state revenue, the government was forced to cut the budget twice during 2016, by Rp 40.5 trillion in the initial state budget (RAPBN) and Rp 65 trillion in the revised APBN-P 2016.

Central government spending comprised spending by Ministries/Agencies (K/L) of Rp 677.6 trillion and Non-K/L spending of Rp 470.99 trillion. In 2016, central government spending accounted for 61 percent of total state spending, which amounted to Rp 1,859.46 trillion.

In the 2017 State Budget (APBN), central government spending is targeted at Rp 1,306.7 trillion. Based on its function, the largest portion of central government spending will be allocated to the economic sector, reaching 25 percent, followed by public services at 24.7 percent, social protection at 11.5 percent, and education at 11 percent.