Jakarta, May 2025 — The Indonesian government has officially unblocked Rp86.6 trillion in previously withheld funds from 99 ministries and agencies, following the completion of a comprehensive budget efficiency process as mandated by Presidential Instruction No. 1 of 2025. This measure is a key step in the national fiscal reform agenda under President Prabowo Subianto’s administration.
Deputy Finance Minister Suahasil Nazara explained that the government sought and received presidential approval to refocus, relocate, and unblock budget allocations to ensure spending is better aligned with national development priorities.
“As of now, Rp86.6 trillion has been unblocked, allowing ministries and agencies to resume their spending activities,” said Suahasil.
Of the total, Rp33.11 trillion is allocated to 23 newly established ministries and agencies under the Merah Putih Cabinet restructuring, while Rp53.49 trillion supports 76 existing ministries and agencies. The realization of these funds has already led to increased budget absorption since March 2025.
According to the Ministry of Finance, spending in March alone reached Rp113.6 trillion—surpassing the combined total of January and February, signaling a significant acceleration in government disbursement.
Expenditure by the restructured entities rose from Rp5.2 trillion in February to Rp24.7 trillion in March, while other ministries increased spending from Rp22.8 trillion to Rp171.3 trillion following the unblocking decision.
Finance Minister Sri Mulyani Indrawati confirmed that President Prabowo has instructed realignment of budget allocations toward more productive sectors, emphasizing economic growth, job creation, and industrialization through downstreaming strategies.
“This aligns with the President’s direction to boost productivity, generate or save foreign exchange, and promote industrial development. Coordination and implementation will intensify over the next month,” she added.
The move underlines the government’s commitment to efficient, impactful fiscal management—redirecting public funds to priority programs that deliver tangible results for the Indonesian people.
