Home Affairs Minister Tito Karnavian has asked regional governments (pemda) to improve their financial management to achieve the Regional Revenue and Expenditure Budget (APBD) realization target by the end of the 2025 fiscal year.
Based on data as of November 30, 2025, total realized provincial, district, and city revenue reached Rp1,200 trillion, or 88.35 percent. Meanwhile, total realized regional spending reached Rp1,082 trillion, or 75.43 percent.
In his statement Tito hoped that the figure would continue to increase until the end of the fiscal year, considering that on December 31, 2024, the total revenue realization for all regions reached IDR 1,367 trillion, or 97.29 percent, with spending realization of IDR 1,365 trillion, or 91.72 percent.
"Hopefully, by the end of December, the figures will be even better and higher," he said while leading the 2025 Regional Budget Realization Evaluation Meeting with all regional heads, held virtually from the Ministry of Home Affairs Office in Jakarta.
Tito emphasized that government spending is a crucial factor in boosting regional economic growth. High regional government spending will increase money circulation in the community, thereby boosting household purchasing power and consumption.
Household consumption, he continued, is a major contributor to national economic growth. Furthermore, regional government spending also acts as a stimulus for the private sector to remain active and productive.
