IDR 234 Trillion in Regional Funds Sit idle in Banks,Sparking Debate Among indonesian Governors
Indonesia’s regional economic recovery is facing headwinds as a ample IDR 234 trillion (approximately $14.6 billion USD) in government funds remains deposited in banks, rather than being utilized for planned expenditures. The revelation, made by Minister of Finance Purbaya Yudhi Sadewa on Monday, October 20, 2025, at an inflation control meeting in Central Jakarta, has ignited a debate among regional leaders regarding the reasons for the slow disbursement and the accuracy of the reported figures.
According to Minister Sadewa, the sluggish pace of spending has led to a critically important accumulation of regional funds in the banking system. He emphasized that the issue isn’t a lack of financial resources, but rather a bottleneck in the speed of execution. “The low uptake has resulted in an increase in idle regional government money deposits in banks to IDR 234 trillion. So clearly, this is not a matter of not having the money, but a matter of speed of execution,” a senior official stated.
Data released by the Ministry of Finance indicates the following regional fund deposits:
- DKI Jakarta: IDR 14.6 trillion
- East Java Province: IDR 4.1 trillion
- Bojonegoro Regency: IDR 3.6 trillion
- West Kutai Regency: IDR 3.2 trillion
- North Sumatra Province: IDR 3.1 trillion
- talaud Islands Regency: IDR 2.6 trillion
- Mimika Regency: IDR 2.4 trillion
- Badung Regency: IDR 2.2 trillion
- Tanah Bumbu Regency: IDR 2.11 trillion
- Bangka Belitung Province: IDR 2.10 trillion
- Central Java Province: IDR 1.9 trillion
- Balangan Regency: IDR 1.8 trillion
The Minister’s statements prompted immediate responses from several governors. West java Governor Dedi Mulyadi publicly challenged the accuracy of the data, asserting that no regional funds were held in deposits by the West Java Provincial Government, including at Bank BJB. “I have checked, nothing is kept in deposits. I challenge the Minister of Finance to reveal the data and the facts about which regions hold funds in the form of deposits,” Mulyadi stated, as reported by detikJabar on Tuesday, October 21, 2025. He attributed the slow budget realization to efficiency policies aimed at ensuring targeted distribution of funds, while acknowledging the possibility that other regions may be engaging in deposit practices.
Minister Sadewa responded by clarifying that the data originated from Bank Indonesia (BI) and is accessible for verification by regional governments directly. “I’m not an employee of the West Java regional Government. If he wants to check,just check it yourself. That’s data from the BI monitoring system which is reported by banks every day, yes, every few weeks,” Sadewa explained at a press conference on Tuesday, October 21, 2025.
Governor Bobby Nasution of North Sumatra acknowledged the Ministry of finance’s data but indicated that his province’s funds held at Bank Sumut totaled IDR 990 billion, less than the reported figure. He attributed the discrepancy to pending evaluations from the Ministry of Home affairs, which have delayed payments for ongoing activities.
Though, DKI Jakarta Governor Pramono Anung confirmed the accuracy of the Ministry of Finance’s report regarding the IDR 14.6 trillion held by the DKI Regional Government in Bank Jakarta. Pramono explained that this pattern of increased spending in the final quarter of the year is typical for Jakarta, driven by payments for development projects and public services completed in November and December. “This is the pattern in Jakarta, there is a spike in payments at the end of the year,” he said on Wednesday, October 22, 2025.
The debate underscores the complexities of regional financial management in Indonesia and the challenges of ensuring efficient and timely allocation of public funds. the situation raises questions about potential inefficiencies in bureaucratic processes and the need for improved coordination between central and regional governments to accelerate economic recovery. .
