As the Prabowo-Gibran Administration Approaches One Year, Budget Efficiency Becomes the Foundation of Economic Stability
JAKARTA – As the first year of the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka approaches, the national fiscal policy is showing a new, more measured and productive direction. The government is placing budget efficiency as the primary foundation for maintaining economic stability, ensuring that every rupiah of state funds is effectively utilized for the benefit of the people.
This concrete step was marked by the issuance of Presidential Instruction (Inpres) Number 1 of 2025 concerning Budget Efficiency on January 22, 2025, which was then further elaborated through Minister of Finance Regulation (PMK) Number 56 of 2025 on August 5, 2025. The government is targeting savings of up to IDR 306.69 trillion, consisting of IDR 256.10 trillion from ministry/institutional spending and IDR 50.59 trillion from transfers to regions.
However, the most interesting change occurred after Finance Minister Purbaya Yudhi Sadewa was inaugurated, replacing Sri Mulyani Indrawati on September 8, 2025. Under Purbaya’s leadership, budget efficiency is no longer understood solely as cuts or savings, but rather as an effort to ensure public funds are spent appropriately, on time, and not languishing without economic benefit.
“Efficiency is not about budget cuts, but ensuring state funds are used according to their intended purpose and are not misused,” Purbaya emphasized. One example is the policy of transferring Rp 200 trillion in surplus budget balances (SAL) from Bank Indonesia to banks, so that these funds can drive the national economy more productively.
This transformation in the meaning of efficiency has also inspired local governments to restructure their spending structures. The Bandung City Government, for example, faced a decrease in central government transfers of up to Rp 600 billion this year. However, the city government continues to ensure optimal public services.
“We’re focusing on truly essential spending that has a direct impact on the community. We’re cutting hotel meetings, excessive consumption, and ceremonial activities,” said Bandung Deputy Mayor Erwin.
A similar policy is also evident in Jakarta. Ade Suherman, a member of Commission B of the Jakarta Regional People’s Representative Council (DPRD), believes that budget efficiency must go hand in hand with improving the quality of public services. He cited the success of TransJakarta, which reduced the subsidy ratio per customer to IDR 9,831 and increased non-ticket revenue to IDR 218.4 billion.
“TransJakarta proves that efficiency doesn’t mean cutting service. Quality is maintained, and even improved,” he said.
Under the Prabowo-Gibran administration, efficiency has become the new spirit of state financial management, not about reducing spending, but rather ensuring that every expenditure generates maximum economic and social value. This new paradigm emphasizes that efficiency is the key to a stable, resilient, and equitable economy.
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