Jakarta, May 2025 — The Government of Indonesia has officially unblocked Rp86.6 trillion in previously reserved budget allocations, marking a significant move toward accelerating the implementation of national priority programs in line with President Prabowo Subianto’s fiscal reform agenda.
The budget unblocking follows the completion of a comprehensive expenditure efficiency review mandated by Presidential Instruction No. 1 of 2025 concerning spending efficiency in the implementation of the State and Regional Budgets (APBN/APBD). The Ministry of Finance conducted the review across 99 ministries and agencies (K/L), resulting in a total budget efficiency of Rp256.1 trillion, alongside Rp50.6 trillion in regional transfer adjustments.
“We have concluded the efficiency process and, with the President’s approval, we have begun refocusing, relocating, and unblocking budget allocations to ensure spending aligns with government priorities,” said Deputy Finance Minister Suahasil Nazara.
Of the Rp86.6 trillion unblocked, Rp33.1 trillion has been allocated to 23 newly formed ministries and agencies under the Merah Putih Cabinet restructuring, while Rp53.49 trillion has been directed to 76 existing ministries and agencies.
This move has already triggered accelerated budget realization. Spending reached Rp24.4 trillion in January, climbed to Rp83.6 trillion in February, and surged to Rp196.1 trillion by March—amounting to 16.9% of the total state budget. March alone recorded Rp113.6 trillion in realized K/L spending, outpacing the combined total of the previous two months.
Disaggregated figures show that spending from the restructured ministries rose from Rp5.2 trillion in February to Rp24.7 trillion in March, while other K/L spending jumped from Rp22.8 trillion to Rp171.3 trillion over the same period.
Finance Minister Sri Mulyani Indrawati emphasized that the President’s directive includes reallocating funds to more productive sectors, such as job creation, foreign exchange optimization, and driving downstream industrialization.
“This is part of our commitment to ensure that every rupiah spent contributes directly to economic growth and public welfare,” she stated.
With this policy, the government reaffirms its dedication to efficient, targeted fiscal management—prioritizing spending that delivers measurable impacts and supports Indonesia’s long-term development goals.
