By: Janu Farid Kesar
The budget efficiency policy implemented by the government has shown tangible results in reducing national expenditure waste and reallocating funds to more productive sectors. This policy not only serves as a prudent fiscal strategy but also represents a commitment to improving the welfare of the people.
With this policy, funds previously allocated for less impactful activities can now be redirected towards more beneficial developments, such as in the education and agriculture sectors. This initiative also encourages the public to better understand the importance of budget efficiency in managing state funds.
Head of the Presidential Communications Office, Hasan Nasbi, emphasized that this budget efficiency measure aims to enhance national productivity and revitalize economic sectors. According to him, a 50% reduction in government travel expenditures from the total of Rp44 trillion per year could result in savings of approximately Rp20 trillion.
These savings can then be used to build 10,000 schools in various regions across Indonesia. This demonstrates that the budget efficiency policy is not just about savings, but rather reallocating resources for greater societal benefits.
In addition to education, the agriculture sector has also benefited from this budget efficiency. Funds saved from travel expenditures can be used to purchase up to 3 million tons of rice from farmers at a minimum price of Rp6,500 per kilogram.
This move also helps to improve farmers’ welfare and ensures the stability of the national food supply. The efficiency also allows the government to increase the quota for subsidized fertilizers to as much as 9.5 million tons, which will support farmers in boosting agricultural production.
Moreover, Hasan Nasbi pointed out the common issue of ineffective spending, particularly towards the end of the year. He noted that many government agencies tend to exhaust their budgets hastily without careful planning, especially in October, November, and December. The efficiency measures implemented aim to reduce this pattern of wasteful spending without sacrificing government performance.
He also praised the Food and Drug Monitoring Agency (BPOM) as one of the institutions that successfully implemented efficiency without disrupting its operations. For instance, testing laboratories continue to operate optimally while using electricity efficiently, only turning it on when necessary.
Support for this efficiency policy also comes from the Ministry of Immigration and Corrections (Kemenimipas). Minister Agus Andrianto stated that his ministry had proposed a budget cut of Rp4.49 trillion, reducing the initial allocation from Rp15.96 trillion to Rp11.46 trillion.
This reduction includes a 55.9% cut in goods expenditure and a 45% cut in capital expenditure, without affecting employee costs. According to him, this move aligns with the government’s priority programs such as self-sufficiency in food, energy, and investment in human resources through the Free Nutritious Meals program.
Despite the budget cut, Kemenimipas remains committed to increasing state revenue. In 2024, the ministry recorded a non-tax state revenue (PNBP) contribution of Rp9 trillion, marking the highest achievement in the institution’s history. In addition to fiscal aspects, Kemenimipas also supports food security through the Food Barn program managed by inmates in detention centers and prisons.
One of the largest projects is located at the Nusakambangan Correctional Facility, where 115 hectares of land have been utilized for agriculture, livestock, and aquaculture. Although this program has yet to contribute significantly to national food availability, it has successfully met the food needs within the detention and prison environment.
In addition to budget efficiency and support for food security, Kemenimipas continues to optimize digitalization in public services. Minister Agus Andrianto emphasized that the digitalization of passport, visa, and residency permit services has received wide appreciation from the public. This digitalization not only accelerates administrative processes but also reduces operational costs significantly, aligning with the budget efficiency principle.
Meanwhile, Bank Indonesia Jakarta emphasized that the efficiency policy outlined in Presidential Instruction (Inpres) No. 1 of 2025 does not necessarily eliminate existing programs.
Head of Bank Indonesia Jakarta Representative, Arlyana Abubakar, explained that this efficiency is achieved through budget reallocation, allowing priority programs to be prioritized without eliminating other ongoing initiatives. This ensures that the efficiency policy remains in line with public needs.
The government’s budget efficiency policy proves that prudent financial management can provide tangible benefits for society. By cutting wasteful expenditures, the government has successfully redirected funds into more productive sectors such as education, agriculture, and food security. This initiative shows that efficiency is not merely about savings, but a strategy to improve the people’s welfare in a more equitable and sustainable manner.
The success of this budget efficiency teaches that state funds must be used wisely and responsibly. The public must also understand the importance of transparency and accountability in managing budgets. With synergy between the government and society, this efficiency can continue to be strengthened to create more inclusive development. Now is the time to support smarter policies for a more stable and globally competitive economic future.
)* Persada Institute
