Finance Ministry Urges Local Governments to Accelerate 2025

Indonesia's Ministry of Finance on 10 November 2025 directed all local governments to promptly implement their 2025 regional budget (APBD) spending. The order, letter No. S‑662/MK.08/2025, was signed by Finance Minister Purbaya Yudhi Sadewa.

Despite the high transfer volume, the actual 2025 APBD spending fell compared with the previous year, causing regional cash balances in banks to rise through the third quarter of 2025. By the end of September 2025, total deposits of local governments in the banking system reached IDR 233.97 trillion. This decline prompted the ministry to issue acceleration instructions.

The ministry outlined four actions for local authorities: speed up spending efficiently, meet obligations to third‑party contractors, use bank deposits for regional projects, and conduct regular monitoring until the end of 2025. Implementation will be reviewed to inform improvements in 2026. These steps aim to boost national economic activity.