The government has pledged to maximize state spending for the remainder of this year, ensuring that no budget allocations within ministries or agencies (K/L) are left idle. This statement was delivered directly by Finance Minister Purbaya Yudhi Sadewa.

“This is basic fiscal principle. When funds are already allocated, they should be fully utilized,” Purbaya said at the State Palace, Jakarta, Wednesday (September 17, 2025).

He further urged ministries and agencies to avoid carelessly designing future work plans and budgets if they are not capable of fully spending them in line with President Prabowo Subianto’s priority programs.

“If you’re not confident or unable to execute, then don’t design or plan it at all. That’s the point,” he stressed.

Since last week, Purbaya has begun to release idle government funds previously parked at Bank Indonesia, amounting to Rp200 trillion. These funds were injected into five state-owned banks by the end of last week.

By placing idle state funds into the banking system, he aims to accelerate the growth of base money (M0) circulation to stimulate the economy through faster and cheaper credit or financing distribution by banks.

“In theory, this is tied to the opportunity cost of money. When the opportunity cost of money declines, interest rates fall. As a result, money circulates more, and people are less hesitant to spend,” Purbaya explained.

“Why? Because interest rates are now lower than before, so people would rather use their money. Likewise, companies looking to expand will no longer fear borrowing. Since interest rates are lower than before, this becomes an opportunity for expansion,” he emphasized.

For context, in 2024, the government still recorded an Excess Budget Balance (SAL) of Rp458.5 trillion.