TEMPO.CO, Jakarta – Finance Minister Purbaya Yudhi Sadewa has explained why Indonesia’s education budget realization in 2025 fell below the constitutionally mandated threshold of 20 percent of total state expenditure, saying the decline was caused by higher spending needs in other sectors.
Purbaya said the government had initially designed the 2025 state budget with an education allocation above the 20 percent minimum requirement.
However, unexpected expenses, particularly disaster response efforts in regions such as Aceh and Sumatra, increased overall state spending and reduced the education sector’s proportion.
"It is actually designed to be above 20 percent, but when there are disasters in Aceh and other places, everything gets inflated," Purbaya said in Yogyakarta on Thursday, July 16, 2026.
He stressed that the decline was not related to the government’s Free Nutritious Meals (MBG) program.
Disaster Spending Reduced Education Budget Share
According to Purbaya, emergency spending for disaster management was the main factor behind the lower education budget ratio.
The increase in total state expenditure caused the education budget’s percentage share to decrease, even though the nominal allocation for education did not decline.
"So, the percentage of the education budget decreased. It has not been fully distributed to the Ministry of Education yet, and that may be the main reason," he said.
Purbaya explained that the government must adjust budget proportions whenever it increases spending in other sectors. Under Indonesia’s Constitution, the education budget must receive at least 20 percent of total state expenditure.
He gave an example of the difficulty in maintaining the ratio when unexpected spending occurs.
"If I have to add Rp100 trillion elsewhere, the education budget must also increase by 20 percent, right?" he said.
Government Faces Challenges in Adjusting Budget Allocation
Purbaya said maintaining the mandatory education budget ratio can be challenging when additional spending needs emerge suddenly.
He explained that ministries responsible for education may not always be prepared to absorb large additional allocations within a short period.
"If Rp100 trillion suddenly has to be allocated for disasters, the education budget would also have to increase because of the proportional requirement. That is difficult to anticipate," he said.
He added that the government must consider not only budget percentages but also the effectiveness of spending to ensure funds generate meaningful improvements in the education sector.
Responding to criticism over the decline in the education budget’s share, Purbaya said discussions should not focus solely on the percentage figure.
He emphasized that the government remains committed to fulfilling the constitutional mandate and improving the impact of education spending.
Purbaya also assured that future budget planning would continue to maintain the education allocation at a minimum of 20 percent, or potentially higher, while balancing financing needs across other sectors.
"Certainly, in the coming years, the education budget will be 20 percent or even more than the budgeted amount. The design will continue to maintain the budget proportion," he said.
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