Jakarta – The Indonesian government is focusing on implementing budget efficiency strategies to ensure the success of programs aimed at improving community welfare. This initiative aligns with the President’s directive to streamline government spending, ensuring funds are allocated to areas that have a significant impact without compromising vital services.
This is reflected in the latest directive through Presidential Instruction No. 1/2025, which aims to streamline government expenditures with a focus on areas that can provide maximum impact.
Finance Minister Sri Mulyani Indrawati emphasized that budget efficiency will not only strengthen the sustainability of state finances but also improve the implementation of key programs. One prominent example is the Free Nutritious Meals (MBG) initiative, which provides nutritious meals for vulnerable communities. This program is expected to help stimulate the local economy by involving small and medium-sized enterprises (SMEs) in the supply chain.
“Through programs like MBG, we aim to stimulate local economic growth, reduce poverty, and create job opportunities,” said Sri Mulyani.
She added that by centralizing the supply chain, from agricultural products such as vegetables and meat to logistics and processing, the government can ensure the benefits of this program are felt directly by the community.
“Our goal is to ensure that savings from efficiency measures can be reinvested back into direct services to the community, thereby improving overall quality of life,” continued Sri Mulyani.
In addition, the government is committed to ensuring that the budget efficiency efforts do not interfere with emergency response capabilities. Coordinating Minister for Human Development and Culture (PMK) Pratikno emphasized that although budget efficiency measures are important, they will not disrupt disaster response or mitigation efforts.
“We have been directed by the President to implement budget efficiency, and that’s a good thing. However, government functions will continue as usual, with no disruptions. In fact, with this efficiency, budget allocations can be more focused on direct services to the public,” said Pratikno.
In the medium term, the PMK Ministry has also coordinated with the Ministry of Public Works and Housing (PUPR) and the Ministry of National Development Planning (Bappenas) to build resilient infrastructure that can not only withstand natural disasters but also minimize the impacts of such disasters.
“In the medium term, we continue to coordinate, especially with the Ministry of Public Works and Housing. Infrastructure must continuously be improved, rivers must be normalized, and reservoirs should also be restored to reduce disaster risks,” explained Pratikno.
The balance between fiscal vigilance and community welfare is crucial in Indonesia’s efforts to boost the local economy, increase disaster resilience, and ensure that every citizen benefits from well-targeted programs.
Furthermore, by prioritizing strategic and productive spending, the government aims to encourage industrialization, strengthen food security, and accelerate national development through efficient and planned budget implementation.
