Government Implements Fiscal Reform Without Compromising Education Quality

By: Aditi Kiran Sari
The government continues to strive for fiscal reform by applying budget efficiency measures without sacrificing the quality of education. This step aligns with Presidential Instruction (Inpres) No. 1 of 2025 regarding budget spending efficiency in the implementation of the State Budget (APBN) and Regional Budget (APBD).
Through this strategy, state financial management remains effective, while ensuring that the education sector does not experience a decline in quality. Additionally, this fiscal reform serves as a strategic step to balance government expenditures with priority needs that have a direct impact on the public.
The Ministry of Primary and Secondary Education (Kemendikdasmen) continues to prioritize education programs that directly benefit society. The provision of social assistance through the Indonesia Smart Program (PIP) for elementary, junior high, senior high, and vocational school levels remains a key focus.
Furthermore, various allowances for non-state civil servant teachers, both in public and private schools, remain allocated in the 2025 fiscal year budget. Salaries and allowances for employees within Kemendikdasmen are also guaranteed to be fully provided.
Additionally, the Teacher Professional Education (PPG) program will continue as scheduled to ensure the improvement of educator quality in Indonesia. In this regard, the government ensures that no budget cuts will impact the welfare of teachers or access to education for students from low-income families.
Minister of Primary and Secondary Education, Abdul Mu’ti, emphasized that the budget adjustment from IDR 33.5 trillion to IDR 26.27 trillion was made carefully to avoid disrupting educational programs.
He stated that this budget efficiency still takes into account the sustainability of educational programs and the welfare of educators across Indonesia. Operations at central units and Technical Implementation Units (UPT) in regions continue to run smoothly without disruption.
The main focus in budget allocation is directed towards improving vocational education, protecting and developing regional languages, school accreditation, and the implementation of the Academic Ability Test (TKA), which is scheduled to take place in November 2025. Additionally, the government is paying special attention to the digitization of education to broaden access to more inclusive and modern learning.
Chairperson of Commission X of the Indonesian House of Representatives (DPR RI), Hetifah Sjaifudian, expressed appreciation for the efforts made by Kemendikdasmen in maintaining the continuity of priority education programs. According to her, spending for Civil Servants (ASN) remains secure, social assistance such as PIP has not been cut, and various contracts and procurements continue as planned.
She also emphasized that priority programs designed by the government still receive adequate budget allocation. The continuity of education programs, which are part of the national strategic agenda, remains prioritized to ensure that fiscal reforms do not lead to inequality in education distribution across regions.
Meanwhile, Prabowo Subianto’s spokesperson, Dahnil Anzar Simanjuntak, stressed that budget efficiency in the education sector is not carried out haphazardly. According to him, some ministers misunderstood the efficiency policy, which has the potential to cause concern among the public.
He clarified that efficiency is only applied to budget allocations deemed misdirected and not directly impacting public services or human resource development.
The government is simply restructuring budgets that do not support the main goal of improving education quality. He also highlighted the importance of good communication between government officials to ensure that policies are properly understood by the public.
Dahnil also reminded that all government officials should carefully follow the president’s instructions. He emphasized that the efficiency policy is grounded in the principles of equity and sustainability.
The president has emphasized that budget restructuring will only be applied if there are allocations that are less effective, ensuring that it will not negatively affect education or the welfare of educators. According to him, this policy should be seen as a strategic step to optimize the use of the budget without compromising the fundamental aspects of education.
Furthermore, the government continues to encourage collaboration between the public and private sectors to support education programs. With the efficiency measures in place, there is now more room for investment in education, allowing various parties to contribute to creating a more advanced educational ecosystem.
This approach is expected to accelerate the transformation of education in Indonesia and ensure that every child in the nation has access to quality education without being burdened by financial constraints.
The government continues to demonstrate its commitment to maintaining the balance between fiscal efficiency and the quality of national education. With carefully designed policies, state budgets can be optimally managed without compromising the future of the nation’s next generation.
The fiscal reform currently being implemented is expected to create a more resilient and competitive education system at the global level. The sustainability of this efficiency-based education program is believed to bring Indonesia toward an education system that is more adaptive to future challenges, while also enhancing the competitiveness of human resources internationally. (*)
*) The author is a contributor to Ruang Baca Nusantara.