JAKARTA – The government has set a strategic policy to optimize the use of the State Budget (APBN) through Presidential Instruction (Inpres) No. 1 of 2025. The main focus of this policy is to strengthen the productive sectors and support digital transformation to enhance national competitiveness and accelerate economic growth.
Minister for Administrative and Bureaucratic Reform, Rini Widyantini, emphasized that budget efficiency is key to strengthening productive sectors and improving bureaucratic performance.
“Budget cuts are made to ensure that every rupiah allocated is used optimally to support productive sectors and improve the efficiency of state apparatus work,” said Rini.
She also added that digital transformation is one of the strategic steps in this effort for efficiency.
“Modernizing the bureaucratic work system through digital transformation will reduce operational costs and improve public service effectiveness, so that productive sectors can receive maximum support from advancements in information technology,” Rini explained.
Minister of Finance, Sri Mulyani Indrawati, explained that this budget efficiency policy was established after President Prabowo Subianto conducted a comprehensive evaluation of the 2024 APBN implementation. She revealed that a budget cut of IDR 306.69 trillion in 2025 was made to redirect funds to priority programs that provide direct benefits to the public.
“Budget allocations must be focused on programs that have a direct impact on people’s welfare and economic growth. The funds that are cut will be reallocated to support priority programs such as Free Nutritious Meals, food self-sufficiency, and strengthening the health sector, which contributes to national economic stability,” said Sri Mulyani.
She emphasized that budget efficiency is not just about cutting government spending but ensuring that every expenditure has a tangible impact on national development.
“The use of the APBN must be more targeted so that investments truly benefit the people optimally,” she added.
In the same vein, Minister of Public Works and Housing, Dody Hanggodo, assured that budget efficiency would not hinder national infrastructure development.
“Although there are budget adjustments, infrastructure projects will continue optimally because financial planning is done thoroughly. This is to ensure that every strategic project is completed on time and continues to support the economy,” Dody emphasized.
Dody also explained that budget optimization would be carried out transparently and effectively.
“We ensure that the infrastructure built is integrated with irrigation systems to support the agricultural sector and significantly increase national productivity,” Dody added.
