Indonesia's Agriculture Ministry Faces Budget Absorption Challenges

Budget Absorption Status

The Indonesian Ministry of Agriculture reported a budget absorption rate of 72.41% as of November 2025 against a total budget of Rp 31.91 trillion. Minister Andi Amran Sulaiman highlighted that the remaining absorption is challenged by Rp 8 trillion in blocked funds by the Ministry of Finance. The blocked amount includes Rp 136 billion for official travel and Rp 572 billion from foreign loans, which require additional approval before utilization.

Budget Allocation Details

The 2025 budget for the Ministry includes:

• Total budget: Rp 31.91 trillion
• Specific allocation (ABT): Rp 2.46 trillion
• Effective budget after blocking: Rp 31.12 trillion

Challenges and Forward Plans

The Minister acknowledged that the blocked funds have caused delays in budget absorption. Despite these challenges, the Ministry is working to achieve 93% absorption by year-end. The selective release of blocked funds, particularly those related to official travel and foreign loan funding, remains a critical factor in meeting this target.

Implications

The current budget absorption rate and blocked funds situation could impact the Ministry's ability to implement planned programs and projects. The Ministry is working closely with the DPR and Ministry of Finance to address these challenges and optimize budget utilization.