By: Dhita Karuniawati )*
In the context of national development, fiscal policy plays a crucial role as a government instrument in maintaining economic stability and encouraging sustainable growth. However, the effectiveness of fiscal policy depends not only on the size of the budget disbursed, but also on how efficiently the government manages every rupiah spent. Fiscal efficiency is now a key element in the government’s efforts to accelerate the transformation of the national economy to be inclusive, productive, and highly competitive.
The government continues to direct fiscal policy to be more efficient and have a direct impact on society. Deputy Minister of Finance (Wamenkeu) Suahasil Nazara stated that the 2025 fiscal policy is focused on strengthening national economic growth, while ensuring that every rupiah of state spending provides real benefits to the people. According to him, since the beginning of 2025, the Ministry of Finance has been conducting a comprehensive budget review and refocusing. This step is key to promoting fiscal efficiency, ensuring that state spending is truly targeted and supports priority development agendas.
The streamlined budget was then reallocated to fund new priority programs by President Prabowo and Vice President Gibran Rakabuming Raka that directly benefit the people, such as the Free Nutritious Meals (MBG) program, which began on January 6th, the People’s Schools (Sekolah Rakyat), the Red and White Village Cooperative, and other important programs.
Toward the end of 2025, the Ministry of Finance is also accelerating the realization of state budget spending by IDR 3,500 trillion to strengthen domestic demand, expand employment opportunities, and reduce poverty. This accelerated spending is believed to be a major catalyst for the economy. In addition to efficiency and accelerated spending, the government is also preparing a liquidity stimulus through a policy of placing IDR 200 trillion in government cash in banks, previously held at Bank Indonesia. This step is part of state cash management to ensure ample banking liquidity and lower interest rates, thus making investment more attractive.
The direction of fiscal policy is in line with structural reforms and efforts to improve the investment climate, including improving the quality of human resources (HR), legal certainty, and infrastructure development. All of these are foundations for maintaining long-term economic resilience. State budget expenditure, equivalent to 14% of GDP, is used strategically to support eight priority government programs, particularly industrial downstreaming, which is the main driver of increased added value, investment, and sustainable economic growth. Fiscal policy is not merely about maintaining the balance sheet, but rather a concrete tool to strengthen the people’s economy and accelerate national growth. The government continues to strengthen the education, health, and infrastructure sectors to support the business world and strengthen the foundations of the national economy.
Meanwhile, Minister of Finance Purbaya Yudhi Sadewa expressed optimism about the national economic outlook. He explained that accelerated government spending and bank credit growth will be the main drivers of economic growth from the end of 2025 through 2026. The government will ensure that spending programs are timely, well-targeted, and without leakage. Furthermore, the government is committed to continuously strengthening the integrity of the fiscal apparatus, particularly in the areas of taxation and customs. It will also optimize development financing without overburdening the fiscal sector, ensuring that all debt is used productively and fosters sustainable economic growth.
Fiscal efficiency efforts are not only the responsibility of the central government but also regional governments. Fiscal decentralization provides significant scope for regions to manage their own budgets. However, efficiency at the regional level remains a challenge, particularly related to planning capabilities, inter-agency coordination, and budget oversight.
The central government continues to encourage regions to improve the quality of spending, accelerate budget realization, and direct fund allocations to productive sectors that drive the local economy. The implementation of an integrated regional financial reporting system is also a crucial step in improving fiscal efficiency and accountability at all levels of government.
Fiscal efficiency is not merely technocratic jargon, but rather the primary foundation for inclusive and sustainable economic development. In the era of globalization and digital transformation, the government continues to strive to be more intelligent, transparent, and adaptive in managing state finances.
By ensuring that every rupiah of the budget provides maximum benefits to the community, fiscal efficiency can be a real stimulus for national economic growth. Through good governanceWith sound public finances, synergy between policies, and a commitment to transparency, Indonesia can move steadily toward a strong, independent, and equitable economic future.
)* The author is a contributor to the Indonesian Strategic Information Study Institute
