Purbaya Criticizes Local And Central Government Funds That Deposit: Many, But Not Used

The Minister of Finance of the Republic of Indonesia, Purbaya Yudhi Sadive. (Photo: Doc. Antara)

JAKARTA - The Minister of Finance of the Republic of Indonesia, Purbaya Yudhi Sadive also highlighted the low use of the budget by local governments in supporting economic growth.

"I distribute central government money, next year the budget will have efficiency, where I reduce the budget to the regions. They come to me angry, why cut? They don't lack money, even excesses," he said at the Prabowo-Gibran administration 1 year event, Thursday, October 16.

He revealed that as of August 2025, local government funds that were still deposited in regional banks were recorded at IDR 254 trillion.

"That's now August (2025) has IDR 254 trillion. It's destructive in their banks, in regional banks," he said.

In addition, Purbaya said that local governments promised the regional budget would be fully absorbed.

Furthermore, Purbaya revealed that similar conditions also occurred in previous years, where in December 2023, there was still Rp103.9 trillion of funds that had not been absorbed, and in December 2024 it was recorded that Rp92 trillion had not been used.

"So it should be okay if I cut it, it should be okay, but they protested, my money was lacking," he said.

Purbaya also admitted that he would trace the clarity of the funds.

"I don't know where the money was put. In what form, whose savings. But I'll check later," he said.

He emphasized that if in the future the absorption of the regional budget increases and irregularities are not found, then the budget can be increased again.

"So, we are not closing our eyes on the conditions in the economic system that I want not to cut their money, but to ensure that the money is spent on time so that the area grows," he said.

Purbaya added that the same principle was also applied at the central level.

"At the center it is the same as that, areas like that. Yes, the economy should start to get better. That's what we are targeting. So I'm not a bad person, either," he explained.

In addition, he also highlighted the central government's funds which were stored in the form of time deposits where in December 2023 and 2024, the total deposits of the central government in the form of deposits each reached IDR 204 trillion. Meanwhile, as of August 2025, the figure jumped to IDR 285.6 trillion.

"Now (in December 2025), there will be IDR 285.6 trillion in the future. What money is that? Later we will investigate, don't let the unemployed money also have me (owned by the central government) in banking," he said.

He even admitted that he had questioned the existence of the funds to his staff.

"But if I ask my subordinates, I don't know what money it is. Maybe it's payable, what money is it? We'll chase it later. He won't admit it." he said.

Purbaya admits that overall, both in the central and regional governments, still have quite a lot of funds. However, the spending method is considered not optimal.

"But like that, there is quite a lot of cash in the hands of the central government and local governments, the shopping method is not optimal. We will fix that before we move other policies," he concluded.