Central Government Spending Reaches $100 Billion, Up 29%
Indonesia's central government spending rose by 29% to $100.6 billion in the first eight months of 2026. The increase is largely attributed to higher energy subsidies and compensation payments to state-owned enterprises.
Why it matters
Significant increases in government spending and subsidies impact national fiscal health and inflation management in emerging economies.
September 21, 2026 | 7:02 am SHARE URL berhasil di salin. Finance Minister Suahasil Nazara gives a thumbs-up to reporters after his inauguration at the State Palace in Jakarta on September 14, 2026. (Antara Photo/Aditya Pradana Putra) Jakarta. Central government spending reached Rp 1.79 quadrillion ($100.6 billion) in the first eight months of 2026, up 29% from a year earlier, as expenditures accelerated across government programs and energy subsidies and compensation increased.
The Finance Ministry said spending by ministries and government agencies reached Rp 912.4 trillion as of Aug. 31, while non-ministerial spending totaled Rp 879.1 trillion.
Ministry and agency spending included Rp 259 trillion in personnel expenditure, Rp 389 trillion in goods and services, Rp 159.8 trillion in capital expenditure and Rp 104.5 trillion in social assistance.
Non-ministerial expenditure included pension payments, subsidies and government compensation associated with regulated fuel and electricity prices.
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