October 22, 2025 | 08:52 am
TEMPO.CO, Jakarta - Indonesia's Minister of Finance Purbaya Yudhi Sadewa stated that the regional government funds, which have not been utilized and instead remained in banking institutions, reached Rp234 trillion. This data from the Ministry of Finance is sourced from Bank Indonesia and is an accumulation of regional deposits until the end of September 2025.
Purbaya said that the realization of the regional budget expenditure in the third quarter of 2025 was slow. As of September 2025, the realization of the regional budget expenditure reached Rp712.8 trillion or about 51.3 percent of the budget of Rp1,389.3 trillion.
According to Purbaya, the slow absorption of the budget was not due to the lack of funds, but rather due to the delay in execution at the regional level. "The low absorption has resulted in an increase in regional government idle funds in banks, reaching Rp234 trillion. So, it is clear that this is not about the lack of funds, but about the speed of execution," said Purbaya during the regional inflation control coordination meeting in 2025 on Monday, October 20, 2025.
Purbaya emphasized that the central government has already disbursed funds to the regions promptly. The realization of transfers to the regions as of September 2025 reached Rp644.9 trillion or about 74.2 percent of the budget. This figure increased from the realization in the same period in 2024, which amounted to Rp635.6 trillion.
"The central government has already disbursed funds to the regions promptly, and now it is the regional governments' turn to ensure that the funds are truly used for the people," he said.
He stressed that the funds allocated by the central government to the regions are already available and ready to be used to support development in each region. "My simple message is that the funds are already there, use them immediately. Do not wait until the end of the year; use them for productive and directly beneficial development for the people," said Purbaya.
He cautioned regional leaders to be wiser in managing regional funds and to expedite the realization of productive expenditures. "Manage regional funds in banks wisely, keep an adequate amount for routine needs, but do not let the money sleep. The money must work to help the regional economy," he said.
Based on Bank Indonesia's data as of October 15, 2025, the 15 regions with the highest deposits in banking institutions as of September 2025 are as follows:
- DKI Jakarta Province: Rp14.68 trillion
- East Java Province: Rp6.84 trillion
- City of Banjarbaru: Rp5.17 trillion
- North Kalimantan Province: Rp4.7 trillion
- West Java Province: Rp4.17 trillion
- Bojonegoro Regency: Rp3.6 trillion
- Kutai Barat Regency: Rp3.2 trillion
- North Sumatra Province: Rp3.1 trillion
- Talaud Islands Regency: Rp2.62 trillion
- Mimika Regency: Rp2.49 trillion
- Badung Regency: Rp2.27 trillion
- Tanah Bumbu Regency: Rp2.11 trillion
- Bangka Belitung Province: Rp2.1 trillion
- Central Java Province: Rp1.99 trillion
- Balangan Regency: Rp1.86 trillion
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