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New State Spending Absorbed 87.5%, Which Sector is the Largest?

Cindy Mutia Annur 21/12/2022 14:40 WIB

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The Ministry of Finance (Kemenkeu) recorded state expenditure realization of Rp2,717.6 trillion until December 14, 2022. This realization is only 87.5% of this year's target.

Indonesian Government Spending (December 14, 2021 - December 14, 2022)

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Indonesian Government Spending (December 14, 2021 - December 14, 2022)

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The Ministry of Finance (Kemenkeu) recorded that state spending realization up to December 14, 2022, reached Rp2,717.6 trillion. This realization only reached 87.5% of the target set in Presidential Regulation 98/2022, which was Rp3,106.4 trillion.

This means the government must spend Rp388.8 trillion in the remaining two weeks to reach the 100% spending target.

The Director General of Budget (DJA) at the Ministry of Finance, Isa Rachmatarwata, said that spending in the remaining period of the year will be driven by central government spending, both ministries and institutions (K/L) and non-K/L.

"K/L spending has even exceeded the target. We predict this will still increase because several ministries are still realizing their spending, such as the Ministry of Public Works and Public Housing (PUPR) for the New Capital City (IKN) and several infrastructure projects currently in the completion phase," Isa said in a press conference on the APBN KITA, Tuesday (20/12).

Isa stated that historically, state spending rarely reaches 100% of the target, averaging only 94-95% of the budget each year.

In detail, the realization of K/L spending up to December 14, 2022, reached Rp954.4 trillion. Although exceeding the target, this achievement decreased by 6.7% year-on-year (yoy) compared to the same period last year, which was Rp1,022.4 trillion.

Meanwhile, non-K/L spending was recorded at Rp1,013.5 trillion, or up 51% yoy. Realization in this sector was the largest of all spending sectors.

Furthermore, the realization of transfers to regions (TKD) grew by 1.9% yoy from Rp735.8 trillion to Rp749.7 trillion up to December 14, 2022.

In terms of state revenue, it was recorded at Rp2,479.9 trillion in the same period. This figure increased by 36.9% from the previous year's Rp1,812 trillion.

The large realization of state spending compared to state revenue resulted in a state budget (APBN) deficit of Rp237.7 trillion as of December 14, 2022. This figure is equivalent to 1.22% of the Gross Domestic Product (GDP).

Editor : Annissa Mutia

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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New State Spending Absorbed 87.5%, Which Sector is the Largest?

New State Spending Absorbed 87.5%, Which Sector is the Largest?

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New State Spending Absorbed 87.5%, Which Sector is the Largest?

New State Spending Absorbed 87.5%, Which Sector is the Largest?

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