Regional Transfer and Government Spending Update: November 2025

Significant Acceleration in Transfer Distribution

The Ministry of Finance reported that the realization of Transfer to Regions (TKD) reached Rp795.6 trillion by the end of November 2025, achieving 91.5% of the Rp864 trillion target set in the 2025 State Budget (APBN) ¹

. According to Vice Minister of Finance Suahasil Nazara, there was a significant acceleration in TKD distribution during November 2025. The transfer amount increased by Rp82 trillion in November alone, compared to the Rp713.4 trillion total as of October 2025 ¹

Source 1

https://nasional.kontan.co.id/news/realisasi-transfer-ke-daerah-rp-7956-triliun-per-november-2025-915-dari-target

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Regional Government Spending Trends

Regional government (Pemda) expenditure showed notable activity, with total spending reaching Rp922.5 trillion by end-November 2025, equivalent to 65.3% of the total Regional Budget (APBD) ²

. The spending accelerated significantly in November, with Rp114 trillion being disbursed during the month, compared to Rp808.5 trillion as of October 2025. Interestingly, this November spending figure (Rp114 trillion) exceeded the TKD amount (Rp82 trillion) distributed during the same period ²

Source 2

https://nasional.kontan.co.id/news/penyerapan-belanja-apbd-lambat-dana-pemda-rp-2182-triliun-menumpuk-di-bank

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Idle Regional Funds in Banking System

Despite the increased spending, a substantial amount of regional government funds remained idle in commercial banks. As of end-November 2025, Rp218.2 trillion in Pemda funds were deposited in banks, indicating potential for further spending acceleration ²

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Implications and Analysis

The significant increase in both TKD distribution and regional spending during November 2025 suggests a positive momentum in regional financial activities. However, the large amount of idle funds in banks highlights the need for continued monitoring of regional spending capacity. The Ministry of Finance will likely continue to track these developments closely to ensure optimal budget realization for the remainder of the fiscal year.