Minister of Finance Reveals the Reason for the Education Budget Not Reaching 20 Percent of the State Budget

Minister of Finance of the Republic of Indonesia Purbaya Yudhi Sadewa. (Ministry of Finance)

JAKARTA - Minister of Finance (Menkeu) Purbaya Yudhi Sadewa emphasized that the government remains committed to fulfilling the constitutional mandate by allocating a minimum of 20 percent of the State Budget (APBN) for education.

Purbaya made the statement in response to the views of a number of DPR RI factions regarding the implementation of mandatory spending for education in the 25th DPR RI Plenary Meeting of the V Session in Jakarta, Tuesday.

"The government states that in accordance with the mandate of the 1945 Constitution of the Republic of Indonesia, the state prioritizes education budgets of at least 20 percent of the state budget and the regional budget to meet the needs of national education," said Purbaya.

He explained that the allocation of education budget every year has been set at 20 percent in the State Budget Law. The funds are channeled through three main channels, namely central government spending, transfer to the region (TKD), and education financing.

According to Purbaya, the government continues to optimize the realization of the education budget to match the constitutional mandate. In 2025, the realization of the education budget was recorded at 19.1 percent of the total realization of state expenditures or slightly below target.

However, the government is optimistic that the realization of the education budget in 2026 can reach and even exceed the minimum limit of 20 percent.

"In implementation, there are sometimes obstacles. It could be that the units or ministries that implement the policy are not ready. However, the most important thing is that the realization continues to increase year by year and is close to 20 percent. This year we will push it really over 20 percent," said Purbaya.

He explained that one of the factors that made the realization of the education budget had not reached 20 percent was the total change in state spending during the current fiscal year. When spending on other sectors increases, the portion of the education budget needs to be adjusted again to remain in accordance with mandatory spending provisions.

However, adjustments to the education program cannot be done instantly because it requires a planning and implementation process that takes time.

Purbaya believes that the target of allocating 20 percent of the education budget can be achieved in line with the implementation of various priority government programs that require large budget support.

The program includes the construction of People's Schools, integrated schools, school rehabilitation, provision of digital panels for schools throughout Indonesia, to strengthening the permanent education fund through the Education Fund Management Agency (LPDP).

"We will create People's Schools, integrated schools, school improvements, and others with a fairly large budget. Then there is a digital panel program for schools throughout Indonesia. We will also strengthen the LPDP with additional capital of around Rp. 25 trillion this year. So the allocation for education will be ensured to reach 20 percent," said Purbaya.