Government Focuses on Unblocking Budget for People’s Welfare

By: Mahmud Sutramitajaya)*
The government, through firm steps taken by the Minister of Finance (Menkeu) Sri Mulyani Indrawati, has demonstrated a strong commitment to maintaining the continuity of national development and accelerating efforts to improve public welfare. The Ministry of Finance has unblocked a budget of IDR 134.9 trillion. This policy is a turning point in adjusting state spending to be more targeted and in line with the direction of national development set by President Prabowo Subianto.
The unblocking of the budget was carried out in a measured manner and in accordance with the development priority framework. In its implementation, the previously locked budget was not returned to the initial spending post, but was reallocated to support strategic sectors such as infrastructure, education, health, food and energy security, and social protection. This reflects an adaptive and responsive approach to the needs of the community and the direction of national policy.
The Minister of Finance, Sri Mulyani, said that this policy is an implementation of Presidential Instruction (Inpres) Number 1 of 2025 which aims to increase the efficiency of ministry/institution (K/L) spending and transfers to regions (TKD). This efficiency is part of the strategy to strengthen fiscal resilience and improve the quality of state spending. The total efficiency generated through this Presidential Instruction reached IDR306.7 trillion, consisting of savings in K/L spending of IDR256.1 trillion and TKD efficiency of IDR50.6 trillion. This step demonstrates the government’s ability to manage fiscal matters carefully and with a results-oriented focus.
Of the total budget that has been unblocked, IDR48 trillion came from 23 ministries/institutions, while the remaining IDR86.9 trillion came from 76 other ministries/institutions. This unblocking process was carried out selectively to ensure that the reallocated budget has an optimal impact on the community. Sri Mulyani also emphasized the importance of discipline from all K/L in managing the budget efficiently and productively.
The policy of unblocking the budget provides wider fiscal space for local governments. Local governments can now have more freedom in designing and implementing development programs that are in accordance with local needs. This flexibility is crucial because the success of national development is highly dependent on the active participation of local governments in making priority agendas a success.
In addition, Deputy Chairperson 2 of the Indonesian Economists Association of Yogyakarta, Rudy Badrudin, said that the unblocking of the budget is a strategic step that encourages money circulation in the center and regions. This policy provides fiscal certainty for local governments in rearranging spending allocations according to local needs and situations.
Rudy also assessed that priority sectors such as education and health require flexibility in budget use. By unblocking the budget, management of activities in these sectors can be carried out more efficiently and appropriately. In addition, the approach to program implementation can be adjusted to conditions in the field, both inside and outside the office building, in order to ensure the effectiveness of activities.
In general, the policy of unblocking the budget reflects the government’s seriousness in maintaining the continuity of national development that is oriented towards people’s welfare. With a more targeted reallocation of the budget, various strategic programs can be run optimally and directly touch the basic needs of the community. The government shows that state financial management is not only about numbers, but about its impact on people’s daily lives.
Meanwhile, the fiscal efficiency that is carried out provides a positive signal to the international world regarding the credibility of Indonesia’s fiscal governance. This policy strengthens economic stability, creates a better investment climate, and increases national resilience in the face of global pressures. With wise and adaptive financial governance, Indonesia will not only grow economically, but also institutionally.
The success of this policy is highly dependent on the synergy between ministries/institutions and local governments in realizing the budget optimally. Solid coordination and an effective monitoring system are needed to ensure that the unblocked budget is actually used for priority activities that have a direct impact on the community. Thus, budget efficiency is not just a jargon, but turns into real results that can be felt throughout the country.
The government is also faced with the responsibility of maintaining public trust in its fiscal policies. Transparency in budget use and reporting program results are key to ensuring accountability. When the public sees that state funds are being used appropriately, trust in the government will increase along with new hopes for development.
Through the budget unblocking policy, the government has shown that fiscal management can be flexible yet measurable. This policy emphasizes that every rupiah of the state budget must support the big goal of creating social justice, inclusive economic growth, and equitable development across all regions. Fiscal flexibility managed with the principle of prudence is an important foundation for building a more prosperous future for Indonesia.
This step is in line with President Prabowo Subianto’s vision of realizing Indonesia as a strong, advanced, and just country. The government emphasizes that state spending is not just an administrative routine, but rather the main instrument for creating progress and expanding opportunities for all people. With a clear fiscal policy direction and a focus on welfare, the government continues to strengthen Indonesia’s foundation towards a sustainable advanced country.
)* The author is a Bandung student living in Jakarta