IDR 233.1 Trillion in Regional Government Funds Remains Idle in Banks as of the End of August 2025

The Deputy Minister of Finance (Wamenkeu), Suahasil Nazara, reported a large amount of regional government (pemda) funds still parked in banks at the end of August 2025.

“At the end of August, we saw regional government funds in banks totaling Rp233.11 trillion, higher than last year's Rp192.57 trillion,” he said at a press conference in Jakarta on Monday (22/9/2025).

Based on island, regional government funds in Java had the largest amount still held in banks, namely Rp84.77 trillion. This budget is an accumulation from 119 regional governments.

The following are regional government funds still in banks by island as of the end of August 2025:

• Java Island (119 regional governments): Rp84.77 trillion
• Kalimantan Island (61 regional governments): Rp51.34 trillion
• Sumatra Island (164 regional governments): Rp43.63 trillion
• Sulawesi Island (87 regional governments): Rp19.27 trillion
• Maluku and Papua Islands (67 regional governments): Rp17.34 trillion
• Bali and Nusa Tenggara Islands (44 regional governments): Rp16.75 trillion

"Transfers to regions are in accordance with disbursement requirements and remain higher than last year. Therefore, we hope that regional governments will spend faster in the remaining 3 months," he said.

Suahasil stated that as of August 31, 2025, the realization of transfers to regions (TKD) reached Rp571.5 trillion, or 62% of the 2025 State Budget (APBN) allocation.

"So, we hope that regions will continue to accelerate spending so that the Regional Budget (APBD) can provide stimulus to the regional economy, together with the APBN," he said.