Purbaya says the economy will be sluggish in early 2025 as a result of the government’s spending brake

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Jakarta, hitclubapk3 Indonesia

Minister of Finance (Minister of Finance)
Ancient
Yudhi Sadewa touched on how the previous government had been slow to spend
budget
countries in early 2025, so
sluggish economy
.
He dissected economic growth data originating from expenditure components, one of which was government consumption.Purbaya noted that government spending fell in two quarters, namely -1.37 percent in the first quarter of 2025 and -0.33 percent in the second quarter of 2025.
“In the third quarter (2025) there is now positive growth of 5.5 percent. So, in the first two quarters of this year the government’s spending was slow, which slowed down our economic growth,” he said at a Working Meeting (Raker) with Commission XI DPR RI in Central Jakarta, Thursday (27/11).
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“We will improve this and in the future I guarantee that in the first quarter of next year (2026) we will continue to grow (government consumption). We will prevent late spending from the government so that the boost to the economy will remain strong,” promised Purbaya.
The Indonesian economy in the first quarter of 2025 can only grow 4.87 percent on an annual basis (year on year/yoy), then rise to 5.12 percent yoy in the following quarter.Meanwhile, in the third quarter of 2025, the economy grew 5.04 percent yoy.
Meanwhile, Deputy Minister of Finance (Wamenkeu) Suahasil Nazara explained why ministry/institution (K/L) spending was slow at the start of this year.He said there was Presidential Instruction (Inpres) Number 1 of 2025 regarding budget efficiency.
“Where we carried out efficiency and reserves in February (2025). And because of that only starting in March we implemented budget blocking, starting in April opening, relocating, and so on. So spending on goods, especially, only started from April-May, and continued to increase in July, August, September, October,” explained Suahasil.
“We encourage each K/L to complete goods spending according to their budget so that it can have a positive effect on growth. This spending pattern, as usual, will be high in October, November and December,” he continued.
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