Ahead of the First Anniversary of Pragib, Government Ensures Optimal Budget Efficiency in 2026
Jakarta – Minister of Home Affairs (Mendagri), Tito Karnavian, emphasized the importance of budget efficiency across all regional governments ahead of the first anniversary of the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka (Pragib).
He emphasized that every region must stop waste, especially on ceremonial activities and bureaucratic expenditures that do not directly impact the public.
“Regional governments must adapt by making savings, especially on bureaucratic expenditures,” Tito said in West Jakarta.
According to him, the 2026 fiscal year will be a crucial momentum to ensure more efficient and productive public financial management.
“We apologize, this must be reduced. Many regions can implement efficiencies and achieve more effective results,” he stressed.
The Minister of Home Affairs requested that each regional government conduct efficiency simulations before reacting to the reduction in fiscal transfers from the central government. He emphasized that regions should not immediately panic when they see the decline in Regional Transfers (TKD), but should first review spending items that can be rationalized without disrupting public services.
“Don’t immediately react when you see the decline. Do an exercise first. Look at spending items such as bureaucracy, official travel, meetings, and consumption. Many can actually be reduced without disrupting performance,” he said.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa emphasized that the efficiency of the 2026 State Budget (APBN) will be optimally implemented, but with a different approach than in previous periods.
“So, efficiency means ensuring that existing funds are spent according to their intended purpose, on time, and without corruption,” Purbaya emphasized.
According to him, efficiency does not mean holding back spending, but ensuring that state funds are not idle. He explained that reallocation is not intended to increase the budget, but rather to allocate it to more productive items.
“I’m not spending freely; I’m not cutting (the budget) with efficiency measures. The budget is the same as yesterday. But the impact will be different if we manage our money smartly. This is cash management,” he explained.
This budget efficiency measure is a direct directive from President Prabowo Subianto, who is targeting savings of up to IDR 306.69 trillion by 2025 from cutting ministry/institution (K/L) spending by IDR 256.1 trillion and adjusting regional regional budget (TKD) allocations by IDR 50.59 trillion.
This 2026 efficiency policy is part of the government’s commitment to maintaining fiscal discipline and ensuring that the state budget is used productively, transparently, and fairly.
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