Jakarta – President Prabowo Subianto has issued Presidential Instruction No. 1 of 2025, which contains policies for budget efficiency in the implementation of the 2025 State Budget (APBN) and Regional Budgets (APBD).
This step is expected to improve the effectiveness of budget management and optimally support the government’s priority programs.
Economist from Universitas Paramadina, Wijayanto Samirin, views this efficiency policy as a positive step that could better align development with national priorities.
“Reallocation of the APBN will benefit some parties, while others may be disadvantaged, but at least the direction of development will be more in line with what the government wants,” he stated.
However, he also pointed out that if not managed well, the reallocation of the state budget could suppress economic growth.
“For example, reductions in meeting costs and business trips will have a significant impact on the hospitality and transportation sectors,” Wijayanto explained.
Finance Minister Sri Mulyani Indrawati also elaborated that President Prabowo has asked for the budget cuts to be made selectively.
Expenditures that directly affect the welfare of the people must be strengthened.
“Such as providing free nutritious meals, food and energy self-sufficiency, improving the health sector, and efforts to enhance human resources,” said Sri Mulyani.
On the other hand, President’s Special Advisor on Economic Affairs, Bambang Brodjonegoro, appreciated the large-scale efficiency measures. According to him, this policy is a positive step in managing state finances.
“As an advisor, I greatly appreciate the large-scale budget efficiency efforts. I have also led ministries, and sometimes feel that our budgets are not efficient enough,” said Bambang.
Bambang even shared his experience working at the Islamic Development Bank in Jeddah, where meetings and conferences only provided water or tea without additional food.
He believes that such simple habits can be applied across various government expenditures to reduce costs.
However, he also reminded that government spending, including consumption from the budget, plays a role as an economic stimulus. “When there’s a budget, it actually serves as one of the drivers of economic growth,” he said.
According to Bambang, large-scale budget cuts will make it impossible for economic growth in 2025 to rely solely on consumption, especially after the elections are over.
“The success of executing priority programs such as free nutritious meals and building three million homes will be key to economic stability,” he emphasized.
