Indonesia's Spending Reaches Rp1.960.3 Trillion by August 2025

The Indonesian Deputy Minister of Finance (Wamenkeu), Suahasil Nazara, announced that state expenditure realization up to August 31, 2025, reached Rp1,960.3 trillion, or 54.1% of the budget ceiling in the 2025 State Revenue and Expenditure Budget (APBN).

Suahasil explained that state expenditure comprises central government spending (BPP) of Rp1,388.8 trillion and transfers to regions (TKD) of Rp571.5 trillion.

Within BPP, there is ministry/agency (K/L) spending and non-K/L spending. The realization of K/L spending amounted to Rp686 trillion, or 59.1% of the APBN ceiling. This spending was allocated for the disbursement of social assistance: PBI JKN for 96.7 million participants; PKH for 10 million KPM (Beneficiary Families); food staple cards for 18.3 million KPM; PIP for 11.3 million students; and KIP Kuliah for 895,900 students; as well as government priority programs.

Meanwhile, the realization of non-K/L spending reached Rp702.8 trillion, or 45.6% of the APBN ceiling. This includes pension benefit payments and timely subsidies. This component also shows an increase in subsidy realization for fuel (BBM), LPG, electricity, and fertilizer compared to 2024.

“Fuel realization is 3.5% higher, 3 kg LPG is 3.6% higher, subsidized electricity is approximately 3.8% higher, and fertilizer is 12.1 million tons higher. Hopefully, this will continue to help boost the economy in the community,” said Suahasil, as quoted from the Ministry of Finance website, Jakarta, Monday (September 22, 2025).

The realization of TKD reached Rp571.5 trillion, or 62.1% of the APBN ceiling, which is higher than the same period last year. This is due to improvements in the delivery and fulfillment of disbursement requirements by local governments.

However, Suahasil stated that regional spending contracted by 14.1% due to leadership changes and efficiency policies.

“The APBN continues to make strenuous efforts to carry out quality spending for all of Indonesia. State expenditure is a unity between BPP and TKD. It is a unity to drive improvements in people's welfare,” said Suahasil.