Finance Ministry Pushes APBD Spending, Redenomination, and Credit

The Finance Ministry has instructed regional governments to promptly implement their 2025 APBD expenditures. By September 2025, transfers to regions totaled Rp644.8 trillion (74 % of the ceiling), yet spending fell compared with the previous year, leading to higher regional bank deposits.

Bank Indonesia announced plans to redenominate the rupiah and included the Redenomination Bill in the 2025‑2029 Prolegnas. Although the bill is proposed, BI said the implementation will not be rushed and will consider political, economic, social stability and technical readiness.

Bank Mandiri and BRI have disbursed the full Rp55 trillion of government credit and are seeking additional funds. The Supreme Audit Agency urged the government to keep tax‑spending policies aligned with the IMF Fiscal Transparency Code 2019, as tax incentives are no longer classified as tax expenditure under Regulation 122/2024.