Arnoldus Kristianus, Jakarta – The Finance Ministry has released Rp 86.6 trillion ($5.22 billion) in previously frozen ministry and agency budgets to jumpstart spending on priority government programs.

The unblocking follows a nationwide budget efficiency measure mandated by President Prabowo Subianto, which had led to a temporary freeze of Rp 256.1 trillion in budget allocations earlier this year. The cuts drew criticism and sparked nationwide protests, particularly from students concerned about funding for education and social programs.

"As of April 25, we have focused and reallocated budget plans and lifted spending blocks in line with the president's directive. Ministries and agencies can now resume spending on priority programs," Deputy Finance Minister Suahasil Nazara said at a Wednesday briefing.

The newly available funds will support civil servant salaries, operational costs, and restructured flagship initiatives under President Prabowo Subianto's development agenda. Of the total, Rp 33.1 trillion was released to 23 newly formed ministries and institutions, while Rp 53.5 trillion went to 76 existing agencies.

The unblocking has already driven a sharp acceleration in state spending. Ministry expenditures surged from Rp 24.4 trillion in January and Rp 83.6 trillion in February to Rp 196.1 trillion in March, marking a 372.4 percent jump over the previous month. Major disbursements included funding for road maintenance, education aid, and the rollout of the Free Nutritious Meals program.

State budget deficit reached Rp 104 trillion

Finance Minister Sri Mulyani Indrawati said the state budget deficit reached Rp 104.2 trillion by the end of March, equivalent to 16.9 percent of the full-year ceiling of Rp 616.2 trillion.

"Even though we are running a deficit, it remains within planned levels. The APBN (state budget) was deliberately designed to be countercyclical, to support economic recovery and accelerate President Prabowo's development agenda," Sri Mulyani said.

State revenue through March totaled Rp 516.1 trillion, or 17.2 percent of the 2025 target, comprising Rp 400.1 trillion in tax revenue and Rp 115.9 trillion in non-tax income. Government spending reached Rp 620.3 trillion, or 17.1 percent of the target, with Rp 413.2 trillion allocated to central ministries and Rp 207.1 trillion transferred to local governments.

Sri Mulyani said the fiscal outlook remains stable, with key indicators tracking in parallel. "Revenue, spending, and deficit are all moving in tandem at around 17 percent of their respective targets. That's a healthy sign," she said.

Source: https://jakartaglobe.id/business/govt-unlocks-52b-in-budget-funds-to-accelerate-spendin