Indonesian Government Ministries Show Strong Budget Absorption, Ministry of Finance 'Overwhelmed' by Requests
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PublishedDec 19
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Indonesian Government Ministries Show Strong Budget Absorption, Ministry of Finance 'Overwhelmed' by Requests

AnalisaHub Editorial·December 19, 2025
Executive Summary
01

Executive Summary

Key insights and market outlook

The Indonesian Ministry of Finance is experiencing high demand for budget allocations from various government ministries and agencies (K/L), with Finance Minister Purbaya Yudhi Sadewa stating they are 'overwhelmed' by continuous requests 1

2. Despite this, the absorption rate for priority programs has reached 81.2% of Rp 927.2 trillion by November 2025 3. The government remains committed to maintaining the current 2026 State Budget (APBN) structure without adjustments 1.

Full Analysis
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Deep Dive Analysis

Indonesian Ministries Show Strong Budget Absorption, Ministry of Finance 'Overwhelmed'

High Demand for Budget Allocations

The Indonesian Ministry of Finance is facing unprecedented demand from various government ministries and agencies (K/L) for additional budget allocations. Finance Minister Purbaya Yudhi Sadewa revealed that his ministry is 'overwhelmed' by the continuous requests, stating, "Terus terang kita (Kementerian Keuangan) agak keteteran tuh karena mereka (K/L) minta duit terus, minta duit terus." 1

2. This situation indicates that K/L are more prepared to absorb their budgets compared to earlier in the year.

Strong Performance on Priority Programs

Despite the challenges in managing budget requests, the absorption rate for priority programs has shown strong performance. By the end of November 2025, the realization of spending on priority programs reached Rp 752.7 trillion, or 81.2% of the total budget allocation of Rp 927.2 trillion 3

. According to Deputy Finance Minister Suahasil Nazara, this achievement demonstrates that government spending on priority programs is on track.

Regular Programs Showing Faster Absorption

Suahasil noted that programs with regular characteristics tend to have faster absorption rates, with some approaching over 90% realization 3

. This indicates improved planning and execution capabilities among K/L for their regular programs.

No Planned Adjustments to 2026 State Budget

Despite the high demand for additional allocations, Minister Purbaya emphasized that there are currently no plans to adjust the 2026 State Budget (APBN) structure 1

. He mentioned that the fear of budget cuts for underutilization is motivating K/L to improve their spending performance.

Original Sources

Story Info

Published
0 months ago
Read Time
12 min
Sources
3 verified

Topics Covered

Government BudgetMinistry of FinanceBudget Absorption

Key Events

1

High Budget Absorption Rate

2

Ministry Requests for Additional Funds

3

2026 State Budget Structure Maintained

Timeline from 3 verified sources