Government to Use Seized Funds for APBN Deficit

Background on Seized Funds

The Indonesian government has decided to utilize Rp 6.6 trillion in seized funds to help mitigate the country's budget deficit. Finance Minister Purbaya Yudhi Sadewa revealed this plan during a press conference at the Ministry of Finance on December 31, 2025. The funds in question were confiscated by the Attorney General's Office and have since been deposited into the state treasury.

Allocation of Funds

According to Minister Purbaya, once the money is in the state's account, it becomes part of the general state revenue and is not earmarked for specific purposes. The Minister emphasized that the funds would be used to cover the APBN deficit, signaling the government's efforts to manage its fiscal challenges.

Clarification on Alternative Uses

During the press conference, Purbaya also addressed speculation about alternative uses for the seized funds. He clarified that the money would not be used for building 100 permanent housing units (huntap) for disaster victims in Sumatera, as had been previously considered. This decision underscores the government's prioritization of addressing the budget deficit over other potential allocations.

Implications for State Budget

The use of seized funds to offset the budget deficit highlights the government's proactive approach to managing its finances. By utilizing these additional resources, the government aims to maintain fiscal stability and potentially reduce the need for other deficit-financing measures.