Optimizing APBN management and government challenges in realizing sustainable development

Abstract

This paper examines the strategies for optimizing the management of Indonesia’s State Revenue and Expenditure Budget (APBN) and the challenges faced by the government in realizing sustainable development. In the context of a dynamic global economy, effective APBN management is essential to ensure that the national budget can support social, economic, and environmental development needs in a balanced manner. The study highlights the importance of optimizing state budget management as a key factor in achieving inclusive and sustainable development in Indonesia. Although there has been an increase in budget allocation for strategic sectors, the effectiveness of budget use still faces challenges such as complex bureaucracy, lack of transparency, and gaps between planning and realization. This study emphasizes the need to improve monitoring and evaluation mechanisms, strengthen accountability, and enhance the integration between budget policies and sustainable development goals. Key challenges addressed include global economic changes, commodity price fluctuations, and the impacts of climate change on the implementation of sustainable development policies. Recommendations for improvement include increasing human resource capacity in budget management, implementing better information technology systems, and strengthening synergy between institutions. By adopting these strategies, it is hoped that the government can overcome existing challenges and ensure that budget expenditures not only drive economic growth but also contribute to social welfare and environmental sustainability. Through a more efficient and transparent APBN management, Indonesia can move closer to realizing its sustainable development aspirations