Jakarta – The government through the Ministry of Finance has unblocked the budget of IDR 134.9 trillion until June 24, 2025. This policy is a step to adjust state spending to national development priorities set by President Prabowo Subianto.
Minister of Finance (Menkeu) Sri Mulyani Indrawati said that the unblocking of the budget is part of the implementation of Presidential Instruction (Inpres) Number 1 of 2025 which regulates the efficiency of ministry/institution (K/L) spending and transfers to regions (TKD). The Inpres is the basis for budget savings policies to maintain the quality of state spending and strengthen fiscal resilience.
“This means that previously our budget allocation was locked, now it is opened. Not always for the same activities, but diverted in a measured manner according to the national development priorities that have been formulated by the President,” said Sri Mulyani.
Of the total budget that was reopened, Rp48 trillion came from 23 ministries/agencies, while the remaining Rp86.9 trillion came from 76 other ministries/agencies. Although the funds were reopened, Sri Mulyani emphasized that the funds would be reallocated selectively to ensure optimization of the national strategic agenda. The funds were reallocated to support the government’s strategic agendas such as infrastructure development, improving education and health services, food and energy security, and social protection programs.
“We ask all ministries/institutions to take steps to save and adjust spending in a disciplined manner,” he stressed.
The total budget efficiency achieved through the implementation of Presidential Instruction 1/2025 reached Rp306.7 trillion. This figure consists of savings in K/L spending of Rp256.1 trillion from 99 ministries/institutions, as well as TKD efficiency of Rp50.6 trillion.
The policy of unblocking the budget was welcomed by economists. Deputy Chair II of the Indonesian Economists Association (ISEI) Yogyakarta, Rudy Badrudin, considered the move as a positive thing that could accelerate the realization of state spending and increase money circulation, both at the central and regional levels.
“The regions also breathe a sigh of relief in response to this, so they can plan the proposed development and change the spending allocation according to needs and adjust the spending allocation in a targeted manner within the framework of national priorities,” said Rudy.
According to Rudy, the budget unblocking is closely related to efforts to adjust priority sectors, the management of which is directed to answer the strategic needs of the region according to national directives. He added that flexibility in implementing activities is also important, both in the office and outside.
By unblocking this budget, it is hoped that the central and regional governments can be more optimal in implementing strategic development programs and maintaining the momentum of national economic growth.
