Regional Expenditures Slow Down, Purbaya Letters To Regional Heads Throughout Indonesia
Minister of Finance Purbaya Yudhi Sadive sent a letter to all regional heads in Indonesia to encourage the acceleration of the realization of APBD expenditure for Fiscal Year 2025.
Through a letter numbered S-662/MK.08/2025 dated October 20, 2025, addressed to the Governor, Regent, and Mayor, Purbaya emphasized that accelerating regional spending is very important to support national economic growth and the success of government development programs.
"In order to encourage national economic growth and development programs in 2025, and in line with the President's directives, it is necessary to continue to take strengthening steps, both by the Center and Region," Purbaya wrote in the letter.
He also added that the results of central government monitoring and evaluation showed the need for stronger synergy from local governments.
Based on data from the Ministry of Finance until September 2025, the realization of transfer funds to the regions (TKD) has reached IDR 644.8 trillion, or around 74 percent of the total budget ceiling. However, the realization of regional expenditures in the 2025 APBD actually decreased compared to the previous year.
Thus, this condition has an impact on increasing local government fund deposits in banks until the third quarter of 2025.
"In connection with this monitoring, as well as to encourage the national economy in 2025 to be better, we ask the Provincial, Regency and City Regional Leaders to take strengthening steps," he said.
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In his letter, Purbaya conveyed the four main directions to regional heads, namely:
1. Accelerate absorption of regional spending efficiently and effectively with good governance. 2. Fulfill payment obligations to third parties who run local government projects. 3. Utilize deposit funds in banks for regional programs and projects. 4. Melakukan monitoring periodic atas pelaksanaan belanja APBD serta pengelolaan daerah dana hingga akhir 2025, sebagai evaluasi menuju perbaikan di 2026.