Indonesian State Spending Rises, Some Focus on Priority Programs

RRI.CO.ID, Jakarta – Indonesia’s Minister of Finance, Purbaya Yudhi Sadewa, announced that state spending as of the end of January 2026 has increased 25.7 percent, reaching approximately US$13.5 billion. He said this at his ministry's press conference in Jakarta on Monday, 23 February 2026.

"State spending was realized at Rp227.3 trillion, or 5.9% of the 2026 state budget ceiling, growing significantly by 25.7% year-on-year," Purbaya said.

"This reflects an acceleration in government spending since the beginning of the year, particularly to support priority programs aimed at maintaining purchasing power and boosting economic growth in the first quarter," he continued.

Indonesian President Prabowo Subianto has launched several priority programs during his five-year tenure since 2024. These include the Free Nutritious Meals (MBG), the Free Health Check-Up, the Red-and-White Village Cooperatives, and school initiatives such as "People's School" for poor students and "Garuda School" for excellent students.

Most state spending came from central government expenditures. He said President Prabowo's Free Nutritious Meals (MBG) program is one of the factors behind the spending increase.

"In January 2025, the realization of the MBG program was still only around Rp45 billion (approximately US$2.6 million). But in January 2026, its realization reached Rp19.5 trillion (around US$1.1 billion)," he said.

Purbaya noted a state budget deficit of up to 0.21 percent of gross domestic product (GDP), but he claimed the deficit remains well under control and within this year’s budget design framework. He expressed optimism that this year’s state budget will support the national economic growth throughout the year.

"With revenues growing positively, spending accelerating, and the deficit remaining under control, we are optimistic that the state budget will ensure stability while supporting the momentum of national economic growth throughout 2026," he said.