Indonesia government shifts Rp 200 trillion to manage budget expansion

Finance Minister Suahasil Nazara has reported a significant increase in state spending within the 2026 State Budget (APBN). To manage this expansion, the government has reallocated nearly Rp 200 trillion from other programs to address rising costs.

The surge in spending is attributed to natural disaster relief, including forest and land fires and disasters in northern Sumatra, which have absorbed approximately Rp 60 trillion. Additional fiscal pressure stems from increased subsidies and energy compensation.

Regarding revenue, the Ministry of Finance aims to collect more than Rp 600 trillion during November and December to meet the annual target. While spending remains on track, the Minister has urged ministries and agencies to maintain efficiency and good governance during the year-end budget acceleration.