Indonesia's Budget of IDR 529 trillion Remains Unused by The End of 2023

STATE BUDGET - JAKARTA. The Ministry of Finance (Kemenkeu) noted that there is still a remaining budget of IDR 529 trillion that has not been spent until the end of this year.

This is because the realization of state spending as of December 12, 2023, only reached IDR 2,588.2 trillion or 84.5% of the target in Presidential Regulation Number 75 of 2023 amounting to IDR 3,117.2 trillion.

Therefore, the government only has about two weeks ahead to spend the remaining budget.

"I convey that in the next two weeks, there is IDR 500 trillion, we will pay the bills. So, the next two weeks will be a substantial allocation of our state budget," said Sri Mulyani in Our State Budget Press Conference, on Friday (12/15).

Meanwhile, the Director General of Budget of the Ministry of Finance, Isa Rachmatarwata, stated that one of the expenditures to be disbursed by the government is for various subsidies and compensations including fuel oil (BBM) with an allocation of more than IDR 85 trillion.

"In the second half of December, there is spending of around IDR 500 trillion, among other things, for the payment of subsidies and compensations that reach more than IDR 85 trillion. This becomes part of the large expenditure at the end of the year," he said.

He said that the absorption of spending still at the 80% level is indeed common at the end of the year.

"Because indeed some contracts are waited until the contract is finished and usually at the end of the year," he said.

The Director General of Treasury of the Ministry of Finance, Astera Primanto added, that his party will boost spending at the end of this year. One of them is by ensuring that these contracts can be disbursed.

"In the sense that they have submitted a payment order letter (SPM)," Astera explained.

Second, the State Treasury Service Office (KPPN) will always monitor the Ministries/Institutions and also detect if there are technical obstacles, such as internet problems to system obstacles.

Third, his party will also coordinate with the Ministries/Institutions to encourage spending that has not been accelerated.

Fourth, Astera said, his party will instruct all KPPN under him to extend working hours.

"So, friends who usually work normally, now many are working until midnight. Because if we look, Jakarta which covers 70% of the spending, the average SPM that comes in is extraordinarily increasing," he concluded.