By: Heldi Syafira (*)
The government’s strategy of budget efficiency has become a crucial step in driving national development. Through policies aimed at maximizing national spending on priority programs, this efficiency aims to ensure that every rupiah spent significantly benefits the public.
This efficiency policy is implemented following Presidential Instruction No. 1 of 2025, with the Ministry of Finance cutting the budget across 16 different expenditure items. These cuts include a 90% reduction in office supplies, a 56.9% decrease in ceremonial activities, and a 53.9% reduction in business travel. Finance Minister Sri Mulyani Indrawati emphasized that this policy is an important move to ensure a healthy and sustainable management of state finances.
Meanwhile, Economist from Paramadina University, Wijayanto Samirin, assessed that this policy can steer national development to be more aligned with government priorities. According to him, the reallocation of state spending allows the government to focus on sectors that have the greatest impact on the public. However, he also cautioned that the steps must be managed carefully to avoid negative effects on certain sectors of the economy, such as the hospitality and transportation industries, which could be impacted by the reduction in business travel.
Despite the risk of slowing economic growth if not done carefully, the efficiency policy is still seen to bring significant long-term benefits. One of these is ensuring that available funds can be allocated to strategic programs, such as the Free Nutritious Meals Program (MBG), which requires substantial financial support. This program aims to improve public welfare by providing access to healthy and nutritious food.
Wijayanto noted that it is understandable if the public associates the budget savings policy with the need for funding for MBG. However, he emphasized the importance of managing the program transparently and efficiently. Involving SMEs and local producers in its implementation is seen as a strategic step to ensure that the reallocation of funds still has a positive impact on the national economy.
On the other hand, the Chairman of the DPD RI, Sultan B. Najamudin, also expressed appreciation for President Prabowo Subianto’s efforts to ensure that budget efficiency is carried out optimally. According to him, this policy reflects the President’s deep understanding of the importance of effective government spending allocation. Sultan also mentioned that this efficiency needs to become a culture within the government to prevent budget leaks at both the central and regional levels.
He believes that the efficiency policy has a positive impact on public satisfaction with President Prabowo’s performance. In the first 100 days of his administration, public satisfaction reached 81%, which is considered an extraordinary achievement. Sultan referred to the President’s initiative as a bold breakthrough worthy of appreciation.
However, he reminded that the budget efficiency policy should not reduce the quality of public services. Bureaucracy must still be able to deliver excellent services despite stricter budget allocations. Sultan also emphasized the need for innovative approaches in government activities so that efficiency actually leads to improved service quality rather than diminishing it.
The government’s budget efficiency policy also carries an important message about responsible state financial management. By ensuring that funds are allocated to matters that have a significant impact on the public, the government demonstrates its commitment to sustainable and inclusive development.
This step is not only vital for maintaining fiscal stability but also for providing more room for the implementation of strategic programs. With more targeted allocations, the government has a great opportunity to accelerate infrastructure development, improve healthcare and education services, and support other welfare programs.
Budget efficiency also reflects the principles of good governance in state financial management. By trimming less priority expenditure items, the government can focus more on programs that have a tangible impact on society. This policy is expected to serve as an example for all ministries and agencies in carrying out their duties and responsibilities more efficiently and effectively.
In the long term, this policy is expected to create a government that is more responsive to the needs of the public. With better budget management, national development can progress more swiftly and evenly. The government is optimistic that this policy will form a strong foundation in the effort to achieve the grand vision of Indonesia’s future development.
As part of the government’s effort to promote sustainable development, this budget efficiency demonstrates a clear commitment to ensuring that every policy taken truly brings significant benefits to the public. The government continues to commit to overseeing this policy with innovative and transparent approaches to create a more advanced and competitive national development in the future.
*) The author is a contributor to the Jendela Baca Institute.
