October 2023 APBD Spending Absorption Increased by 7.1%

The Ministry of Finance (Kemenkeu) reported that regional spending in the Regional Revenue and Expenditure Budget (APBD) reached Rp811.70 trillion in October 2023. This figure represents 63.5% of the total budget ceiling of Rp1,278.15 trillion.

This spending increased by 7.1% year-on-year (yoy) from Rp757.85 trillion in October 2022.

APBD spending is divided into two parts: by type and by function.

By type, personnel spending absorbed the most, reaching Rp304.45 trillion in October 2023. This is a 2.6% yoy increase from Rp296.72 trillion in October 2022.

Finance Minister Sri Mulyani noted that this increase was due to higher spending on ASN salaries and allowances, and additional ASN income.

"As well as additional income based on other objective considerations," stated Sri Mulyani's report in the APBN KITA press conference on Friday, November 24, 2023.

Still in terms of type, the next largest expenditure was on goods and services, amounting to Rp224.41 trillion. This spending increased by 7.5% (yoy) from Rp208.74 trillion in October 2022.

The next expenditure, capital expenditure, amounted to Rp100.64 trillion, a significant increase of 18.4% (yoy) from Rp85.02 trillion in October 2022.

The surge in capital expenditure realization is due to increased spending on office and household equipment, roads and bridges, and buildings.

Other spending under this category totaled Rp182.20 trillion in October 2023, up 8.9% (yoy) from Rp167.37 trillion.

In terms of function, the largest expenditure was on health, reaching Rp137.84 trillion, a 5.7% yoy increase from Rp130.34 trillion in October 2022.

Next was economic spending, amounting to Rp121.11 trillion in October 2023, up 12.2% (yoy) from Rp107.93 trillion in October 2022.

Finally, social protection spending (perlinsos) was recorded at Rp8.19 trillion in October 2023, up 5.8% (yoy) from Rp7.74 trillion in October 2022.

Below is the realization of expenditure by type and function in the APBD from October 2023 to October 2022:

Expenditure by Type

* Personnel Expenditure
* October 2023: Rp304.45 trillion
* October 2022: Rp296.72 trillion
* Goods and Services Expenditure
* October 2023: Rp224.41 trillion
* October 2022: Rp208.74 trillion
* Capital Expenditure
* October 2023: Rp100.64 trillion
* October 2022: Rp85.02 trillion
* Other Expenditure
* October 2023: Rp182.20 trillion
* October 2022: Rp167.37 trillion

Expenditure by Function:

* Health Expenditure
* October 2023: Rp137.84 trillion
* October 2022: Rp130.34 trillion
* Economic Expenditure
* October 2023: Rp121.11 trillion
* October 2022: Rp107.93 trillion
* Social Protection Expenditure (Perlinsos)
* October 2023: Rp8.19 trillion
* October 2022: Rp7.74 trillion

(See also: All Spending Components Increase, August 2023 APBD Realization Increases)