By: Eko Gumilar
The government continues to strive for national economic stability through budget efficiency policies in managing the State Budget (APBN). This step is seen as an essential strategy to address global economic uncertainties and ensure that every rupiah spent truly brings maximum benefits to the people. President Prabowo Subianto has emphasized that this efficiency is not only aimed at reducing state expenditure but also at optimizing the use of the budget to be more effective and impactful.
Chairman of the Indonesian Business Council (IBC), Arsjad Rasjid, views this policy as a correct step. According to him, efficiency is not only about savings but also about how the budget can be used to spur economic growth. With this approach, the government is not merely cutting expenses but also creating space for the private sector to play a more active role in development. This includes strategic sectors such as infrastructure, industry, food, and energy downstreaming, which are expected to generate new investment opportunities and create jobs for the people.
In addition, Arsjad sees this efficiency policy as an opportunity for the government to improve the fiscal system by involving the private sector. By engaging entrepreneurs in strategic projects, the government can reduce the burden on the state budget without sacrificing development programs. This approach also aligns with efforts to increase state revenue through taxes and levies from more dynamic economic activities.
From an economic perspective, this policy also receives support from academics and public policy experts. Achmad Nur Hidayat, an economist from UPN Jakarta, emphasizes that budget efficiency must be carried out strategically so as not to disrupt ongoing government programs. He highlighted that efficiency is not just about cutting expenditures but optimizing the allocation of funds to more priority sectors.
He believes that funds saved from operational ministry spending could be redirected to more impactful programs for the people, such as infrastructure development, social assistance for vulnerable groups, and job creation. With this approach, the efficiency policy will not only result in a healthier national financial report but also deliver tangible benefits to the people.
However, Achmad also pointed out that these efficiency efforts still face structural challenges in the government, one of which is the size of the cabinet, which he considers too large. He suggests that streamlining ministries and state agencies could be a more substantial solution to reduce fiscal burdens. A complex government structure often results in budget wastage in the form of operational costs, allowances, and complicated bureaucracy.
He also mentioned that regular evaluations of the effectiveness of ministries and agencies should be carried out. If any ministries are found not to contribute optimally to the government’s targets, streamlining should be considered. In addition to increasing efficiency, this step could accelerate decision-making processes and policy implementation.
On the other hand, this budget efficiency policy has a positive impact on the government’s efforts to control inflation and maintain the purchasing power of the people. The savings from the budget can be allocated to strengthen welfare programs, such as energy subsidies and social assistance. This way, the policy not only helps reduce the fiscal deficit but also prevents the rise in essential commodity prices that could burden lower-income communities.
On a global level, budget efficiency policies are not only implemented by Indonesia. Deputy Chairperson of the National Economic Council (DEN), Mari Elka Pangestu, revealed that various countries are also adopting similar strategies to address global economic uncertainties. Countries like Vietnam, China, and the United States have also implemented efficiency measures to maintain their fiscal stability.
Mari sees the policy adopted by President Prabowo as the right move, especially considering Indonesia’s limited fiscal space. She emphasized that budget efficiency is not just about cutting expenses but ensuring that every rupiah spent has the maximum impact for the people. According to her, the government must ensure that every dollar is allocated to productive programs.
Moreover, she reminded that although this efficiency policy is necessary, the government must still be cautious in its implementation so as not to hinder economic growth. She stressed the importance of balancing savings and productive spending that directly benefits the people. Therefore, this policy must be implemented with careful planning to avoid disrupting the continuity of the government’s strategic programs.
From various perspectives, it can be concluded that the budget efficiency policy implemented by President Prabowo’s administration is the right step to maintain national economic stability. By prioritizing government spending in more productive sectors, the government is not only reducing fiscal burdens but also opening up new investment opportunities that can spur economic growth.
However, the implementation of this policy still requires strict oversight and evaluation. Budget efficiency should not just focus on cutting ministry spending but also consider structural reforms in government to make it more effective and responsive to the people’s needs. Moreover, it is important for the government to ensure that the funds saved through efficiency are truly used for programs that provide real benefits to the people, such as infrastructure, social assistance, and strengthening the MSME sector.
)* The author is a contributor to Ruang Baca Nusantara.
