Jakarta. Indonesia’s new Finance Minister Purbaya Yudhi Sadewa has warned that ministries and state institutions failing to use their allocated budgets efficiently in 2025 risk having the funds withdrawn and redirected to priority government programs.

Purbaya, who has been in office for just nine days, said ministries have until the end of October to present concrete spending plans for the remainder of the year.

“I will give them until the end of October. If they believe they cannot spend the budget by year-end, we will take the money,” Purbaya told reporters after meeting President Prabowo Subianto at the Presidential Palace on Tuesday.

He explained that unused funds would be reallocated to flagship projects already prepared for rollout and directly tied to improving public welfare. Among them are Prabowo’s signature initiatives: a nationwide free nutritious meals program for schoolchildren and expectant and nursing mothers, subsidized housing, and free schooling programs.

“We will channel funds to programs that are ready and directly serve the people’s needs. I don’t want state money sitting idle,” Purbaya said.

Starting next month, the finance minister plans to visit ministries with low budget absorption to monitor progress and provide assistance.

Soon after taking office last week, Purbaya made headlines by moving Rp 200 trillion (about $12.2 billion) in idle government funds from Bank Indonesia, the central bank, into state-owned commercial banks.

“If the funds sit in the central bank, they cannot be accessed by the economy or the banking sector. But if placed in commercial banks, they can circulate and provide a stimulus to the economy,” he explained.

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