ATR/BPN Achieves 75% Budget Realization by Q3 2025

Budget Performance Update

The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) has reported a budget realization of 75.01% by the end of the third quarter of 2025. This translates to Rp 4.79 trillion out of an initial budget allocation (pagu) of Rp 6.97 trillion. The effective budget was Rp 6.39 trillion after accounting for a budget efficiency blockage of Rp 578 billion.

Factors Affecting Budget Realization

The achievement of 75% budget realization was influenced by several factors. Firstly, the lifting of the budget efficiency blockage in September 2025 allowed for additional expenditures in the remaining quarter. Minister Nusron Wahid explained that this sudden unblocking necessitated further spending. Secondly, certain contractual activities funded by World Bank loans faced delays due to the need for approval from the World Bank for procurement processes. One such delay occurred with the preparation of the RDTR (Regional Spatial Plan), which was contested by a participant and subsequently reviewed by the World Bank.

Implications and Future Outlook

The budget realization rate reflects both the challenges faced by ATR/BPN and the adaptive measures taken to meet financial targets. The ministry's ability to accelerate spending following the lifting of the budget blockage demonstrates flexibility in financial management. However, the delays in World Bank-funded projects highlight the complexities involved in managing externally financed initiatives.