JakartaGlobe-Aug 5, 2025
The Indonesian government is preparing to disburse Rp 2,121 trillion (approximately $129.5 billion) in the second half of 2025 in an effort to meet its annual spending target and boost annual economic growth to 5.2 percent, Finance Minister Sri Mulyani Indrawati said on Tuesday. Speaking at a press conference at the Coordinating Ministry for Economic Affairs in Jakarta, Sri Mulyani said state spending remains a critical instrument for driving growth. She warned that if both revenue and expenditure fall short of the target, the country risks losing economic momentum. “We still have Rp 2,121 trillion to be spent in the second half of 2025. It’s essential that this be executed with strong governance and free from corruption so that these trillions truly benefit the public,” she said. The Finance Ministry reported that government spending in the first half of 2025 reached Rp 1,406 trillion, marking a modest increase of just 0.6 percent compared to the same period last year. The figure includes Rp 1,003.6 trillion in central government expenditure and Rp 402.5 trillion in transfers to regional governments. Despite the large budget, government consumption contributed only 6.93 percent to GDP growth in Q2 2025, according to the latest data from the Central Statistics Agency (BPS). “This means all ministries, agencies, and local governments must work harder to accelerate spending,” Sri Mulyani said. Indonesia’s economy expanded 5.12 percent in the second quarter of 2025, slightly above the 5.05 percent recorded in Q2 of the previous year and an improvement over Q1 2025 growth of 4.87 percent. Read more at:
