Indonesian State Spending Reaches Rp1,365.4 Trillion by May 2026

Indonesia's state expenditure has surged to Rp1,365.4 trillion as of May 2026, marking a significant 34.4% year-on-year growth. Minister of Finance Purbaya Yudhi Sadewa reported this figure, highlighting that it aligns with the government's objective to accelerate spending.

The current expenditure accounts for 35.5% of the total 2026 State Budget target, which is set at Rp3,842.7 trillion. This robust spending demonstrates the government's commitment to economic activity and program implementation.

Breaking down the expenditure, the central government's spending reached Rp1,059.3 trillion, a substantial 52.6% increase compared to the same period last year. This rise is largely attributed to key initiatives such as the "Makan Bergizi Gratis" (Free Nutritious Meal) program, the distribution of social aid, and the disbursement of holiday bonuses (THR).

Spending also covered non-ministerial/agency budgets, amounting to Rp541.6 trillion, which includes pension benefits, subsidies, and compensation for fuel and electricity. In contrast, transfers to regions (TKD) saw a contraction of 4.9%, totaling Rp306.1 trillion.