The realization of expenditures by ministries/institutions (K/L) until 30 September 2025 was recorded at 62.8% of the 2025 State Budget outlook, which is IDR 800.9 trillion out of a total of IDR 1,275.6 trillion. This figure, while showing progress, implies that accelerating the implementation of spending is crucial in the final months of the fiscal year.
Accelerated budget absorption is necessary, given that government spending plays a vital role as the main stimulus to sustain national economic growth. Delays in absorption have the potential to delay the expected economic multiplier effect of the budget allocation.
The Ministry of Finance is now highlighting several ministries/institutions with large budget allocations, but the realization of absorption is still below 50%. The performance of institutions of concern is the National Nutrition Agency (BGN) with a new realization of Rp 19.7 trillion or only 16.9%. Next are the Ministry of Public Works (MoP) with a realization of IDR 41.3 trillion (48.2%) and the Ministry of Agriculture (MOA) with a realization of IDR 9 trillion (32.8%).
Although overall K/L expenditure realization has only reached 62.8% as of September 2025, there are two categories of expenditure that show on-track performance and even thickening. Personnel Expenditure, which is vital to maintain the basic functions of government, has been realized at IDR 237.2 trillion (77.8% of the outlook), reflecting the smooth payment of ASN salaries, performance allowances, and routine operations.
In addition, Social Assistance Expenditure (Bansos) recorded a realization of IDR 112.7 trillion (75.5% of the outlook). This high realization shows the government's commitment to providing social protection in a timely manner. The funds were channeled through various programs such as the JKN Contribution Assistance Program (PBI) for 96.8 million participants, the Basic Food Card, the Family Hope Program (PKH), as well as educational scholarships such as KIP Lecture and PIP, which play an important role in maintaining people's purchasing power.
Two other expenditure components showed contraction and needed encouragement. For capital expenditure, only Rp 173.1 trillion or 50.3% of the outlook was realized. This low realization of Capital Expenditure, which includes the procurement of equipment and machinery (IDR 130.2 T) as well as the construction of roads, irrigation, networks, buildings, and structures, is a major concern.
The low absorption of vital ministries/institutions' budgets in the third quarter of the fiscal year risks hampering the achievement of development targets and economic growth. Infrastructure (MoW) and food security (MOA) programs are important pillars in promoting competitiveness and prosperity. If these funds are not disbursed promptly, the benefits to society, such as job creation and increased real sector output, will be delayed. Piling up spending at the end of the year also often sacrifices the quality of implementation and effectiveness of spending.
The government has determined steps to optimize the implementation of expenditures that need to be intensified, especially by ministries/institutions with absorption below 50%. Accelerating the implementation of activities or projects and the Procurement of Goods and Services (PBJ) is encouraged to be a top priority.
Administrative processes need to be simplified and accelerated without ignoring the principle of accountability. In addition, the factor of strengthening monitoring of the Plan for Use of Funds (RPD) and encouraging payment of activity terms on schedule must be carried out strictly. Each ministry/institution needs to inventory the real obstacles in the field, both related to regulations, human resources, and technicalities, for immediate mitigation.
Assistance from the Ministry of Finance and the Financial and Development Supervisory Agency (BPKP) can help overcome obstacles to budget absorption. With the acceleration of timely and quality spending, it is expected that the distribution of the remaining budget will be able to provide maximum leverage to the national economy and support the growth target towards the following year.
