By: John Hendrik (*)
The government emphasizes that budget efficiency policies will not disrupt public services such as healthcare and strategic programs focused on public welfare. Minister of Health, Budi Gunadi Sadikin, assured that public services, including free health check-ups and the improvement of medical facilities, will continue without hindrance. Furthermore, the government has adjusted the budget to ensure that priority programs continue to provide optimal benefits for the people.
Budget cuts are being carried out selectively, focusing on non-priority expenditures such as business travel, ceremonial activities, and other operational costs. The government has ensured that these budget reductions will not affect essential sectors but are instead directed towards increasing the efficiency and effectiveness of state fund utilization. For instance, at the Ministry of Health, business travel has been reduced, and senior officials have been instructed to adjust travel policies to support cost-saving measures without affecting work productivity.
For 2025, the Ministry of Health manages a budget of IDR 105.7 trillion, with efficiency measures amounting to IDR 19 trillion. This step is carefully implemented to ensure the continuity of programs that have a direct impact on society. Overall, this efficiency policy is part of a broader strategy to manage the budget more effectively, strengthening fiscal resilience.
This move aligns with national fiscal policy directives that emphasize optimizing the budget to drive sustainable development. Finance Minister, Sri Mulyani Indrawati, stated that budget efficiency aims to ensure that government spending is more focused on programs with a tangible impact on society, such as the Free Nutritious Meals Program (MBG), food and energy self-sufficiency, and improved healthcare services.
The Ministry of Social Affairs has also adopted similar measures by optimizing operational spending without reducing social assistance programs. Deputy Minister of Social Affairs, Agus Jabo, assured that social assistance and the Family Hope Program (PKH) will continue to run without interruption. The government has also adjusted the distribution mechanism to make it more effective and better targeted.
In addition to the healthcare and social sectors, budget efficiency is being applied across various ministries and agencies to reduce non-urgent expenditures. Under this policy, spending on ceremonial activities, meetings, seminars, and office supplies has been significantly reduced. This policy reflects the government’s commitment to improving the efficiency and accountability of state financial management.
While many budget items have been adjusted, the government ensures that this approach aims to improve program effectiveness and provide greater benefits to the public. Efficiency does not mean arbitrary cuts but rather the optimization of spending so that every rupiah spent generates maximum impact.
The government also promotes transparency and stricter oversight of budget utilization. The digitalization of budget monitoring has been strengthened to ensure that state funds are used optimally and yield the expected results. This step is not just an administrative policy but also a national strategy to strengthen fiscal stability and improve the welfare of the people.
In the face of global economic challenges, the budget efficiency policy is key to ensuring the sustainability of development and public services. The government is committed to implementing this policy carefully to ensure it delivers maximum benefits for the people and fosters sustainable development.
This efficiency also serves as an example for regional governments in managing their budgets more effectively. By reducing non-urgent expenditures, local governments can focus more on projects that directly impact public welfare.
This policy is not merely about cutting spending but also reflects the government’s efforts to ensure that every budget allocation genuinely benefits the people. With the right approach, budget efficiency can be a turning point for improving state financial management and ensuring that development proceeds optimally for the progress of the nation.
*) Public Policy Analyst from Pancasila Madani Institute
