Pramono Defends Over $1 Billion in Bank Funds as Active Deposits

The DKI Jakarta Governor, Pramono Anung, has firmly asserted that the substantial sum of Rp 14.6 trillion belonging to the Jakarta provincial government, currently held in banks, does not constitute idle funds. This clarification comes amidst recent scrutiny regarding regional financial management and budget absorption rates.

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Elaborating on the nature of these funds, Governor Pramono explained that they are strategically maintained in both checking accounts (giro) and deposit accounts. These instruments are specifically designated to meet the provincial government’s various financial obligations and expenditures projected until the end of the year. “For Jakarta, whether checked by the Ministry of Home Affairs, our own verification, or Bank Indonesia, there is no discrepancy. The amount of Rp 14.6 trillion stated by the Minister of Finance is accurate. And it exists in two forms: one as a deposit, and the other as a checking account,” Pramono stated during an event at RTH Kampung Kalibata, Jagakarsa, South Jakarta, on Friday, October 24.

He further emphasized that both types of accounts are permissible and will be actively utilized to settle payments arising until the conclusion of December. Pramono adamantly denied that these funds fall under the category of idle funds, stressing their critical role in covering various regional spending needs that mature as the year draws to a close. To illustrate the magnitude of these year-end requirements, he pointed out, “In 2023, we paid almost Rp 16 trillion at the year’s end, specifically in November-December. For 2024, it’s approximately Rp 18 trillion. I currently estimate around Rp 16 to Rp 18 trillion. So, the Rp 14.6 trillion is still insufficient.”

Pramono added that should additional transfer funds arrive from the central government, the provincial administration is prepared to allocate them to bridge this anticipated shortfall. He also definitively confirmed the consistency of financial data between the DKI Provincial Government and the Ministry of Finance. “Once again, yes, the data does not differ. So, there is no polemic concerning Jakarta,” he reiterated, dispelling any notions of financial discrepancies.

However, this assertion from the DKI Jakarta Governor comes amidst earlier concerns raised by the Minister of Finance, Purbaya Yudhi Sadewa. Minister Purbaya had previously highlighted the sluggish realization of regional spending throughout the third quarter of 2025, even as the central government swiftly channeled budgets to regional administrations. This slow pace, according to Purbaya, led to regional funds accumulating in banks, rather than being disbursed for intended programs.

According to data from the Ministry of Finance, DKI Jakarta ranked first among regions with the highest bank deposits, specifically the aforementioned Rp 14.6 trillion. Purbaya underscored the broader issue, stating, “The low absorption results in an additional Rp 234 trillion of idle local government money in banks. So, it’s clear, this is not about a lack of money, but about the speed of execution,” Purbaya emphasized during an inflation control meeting for 2025 at the Ministry of Home Affairs office on Monday, October 20.

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In light of these findings, Minister Purbaya urged regional governments (Pemda) and regional work units (OPD) to adopt a more prudent and efficient approach to budget management. He stressed that regional funds should not be allowed to linger unnecessarily in bank accounts. Purbaya further called upon regional administrations to accelerate productive spending, particularly initiatives that directly benefit the community, rather than deferring disbursements until the year’s end.

As of September 2025, the realization of the Regional Budget (APBD) spending recorded Rp 712.8 trillion, representing only 51.3 percent of the total ceiling of Rp 1,389 trillion. This achievement marks a significant 13.1 percent decrease compared to the same period in the previous year, underscoring the broader challenge of budget execution across the regions.

Reporter: Nasywa Permana

Summary

DKI Jakarta Governor Pramono Anung has firmly stated that the Rp 14.6 trillion (over $1 billion) belonging to the Jakarta provincial government and held in banks are active funds, not idle. He explained these funds are strategically maintained in checking and deposit accounts to cover various financial obligations and expenditures projected until the end of the year, estimating Rp 16-18 trillion is needed for year-end payments. Pramono also confirmed the consistency of financial data between the DKI Provincial Government and the Ministry of Finance.

This assertion follows concerns raised by Minister of Finance Purbaya Yudhi Sadewa, who highlighted sluggish regional spending and funds accumulating in banks. Ministry of Finance data indicated DKI Jakarta held the highest bank deposits, contributing to a broader national issue of Rp 234 trillion in “idle local government money.” Purbaya urged regional governments to accelerate productive spending, as overall regional budget spending realization reached only 51.3% by September 2025, a decrease from the prior year.

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