Regional Governments Park Rp 233.11 Trillion in Banks as Spending Contracts
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JAKARTA, Investortrust.id — Deputy Finance Minister Suahasil Nazara has raised concern over regional governments continuing to hold back funds in the banking system, with balances reaching Rp 233.11 trillion as of August 2025.
"This is higher than last year’s Rp 192.57 trillion," Suahasil said during the Ministry of Finance’s September 2025 “APBN KiTa” press briefing in Jakarta on Monday, Sept 22, 2025.
He urged regional administrations to accelerate spending so that their budgets can provide stimulus for local economic growth.
The highest concentration of idle funds was in Java, where 119 regional administrations parked Rp 84.77 trillion, accounting for 36.37 percent of the total. In Kalimantan, 61 districts and municipalities placed Rp 51.34 trillion, or 22.03 percent of the total. Meanwhile, 164 regional administrations in Sumatra held Rp 43.63 trillion, equivalent to 16.71 percent.
In Sulawesi, 87 administrations kept Rp 19.72 trillion, or 8.27 percent of the total. Another 67 administrations in Maluku and Papua held Rp 17.34 trillion, while 44 administrations in Bali and Nusa Tenggara maintained Rp 16.75 trillion in bank deposits.
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Suahasil reported that transfers to the regions had reached Rp 571.5 trillion as of August, or 62.1 percent of the state budget allocation. This was higher than the same period last year, driven by improved compliance by regional governments in meeting disbursement requirements.
Despite higher transfers, regional budget realization slowed. Overall regional spending contracted 14.1 percent, which Suahasil attributed to leadership transitions and efficiency measures.
Employee spending fell to Rp 281 trillion, down 1.5 percent from Rp 285.2 trillion a year earlier. Goods and services spending reached Rp 170.1 trillion, down 10.6 percent from Rp 190.2 trillion.
Capital expenditure showed the steepest decline, dropping 32.6 percent to Rp 44.9 trillion from Rp 66.5 trillion in August last year. Other spending categories also dropped 30.7 percent to Rp 128.4 trillion, from Rp 185.3 trillion previously.