JAKARTA – The Indonesian government, under the leadership of President Prabowo Subianto, continues to take strategic steps in maintaining fiscal stability.
One of the main policies implemented is the efficiency in state spending as regulated in the Presidential Instruction (Inpres) No. 1 of 2025 regarding Efficiency in the Implementation of the 2025 State Budget (APBN) and Regional Budget (APBD).
Through this policy, the government targets a budget saving of up to Rp 306.6 trillion.
The efficiency policy includes reducing business trip expenditures by up to 50%, limiting ceremonial activities and Focus Group Discussions (FGDs), and cutting honorarium for working teams.
Economist and financial market observer, Ibrahim Assuabi, views this policy as a positive step in controlling the budget deficit.
“The government currently needs substantial spending for various development programs. If this is not balanced with efficiency, there will be more bonds that need to be issued to cover the budget,” he stated.
He added that through this budget efficiency, the budget deficit can be controlled, and dependence on foreign debt can be reduced.
However, Ibrahim also reminded that this policy could potentially impact the business sector, which has relied on cooperation with the government.
Despite this, he believes that the savings will provide greater fiscal space for the government to carry out priority programs.
Finance Minister Sri Mulyani emphasized that the efficiency measures aim not only to save the budget but also to improve the accountability of state spending.
“With this policy, we can improve the quality of spending, including in terms of operational costs for ministries. Furthermore, this efficiency can close gaps that have the potential to cause corruption,” she said.
President Prabowo himself has repeatedly emphasized the importance of efficiency in state spending.
An example of this efficiency implementation can be seen in the Ministry of Communication and Digital (Kemkomdigi), which has undergone significant budget cuts.
For the 2025 fiscal year, Kemkomdigi has proposed a reduction of Rp 4.49 trillion, or about 58.17% of the total approved budget.
Minister of Communication and Digital, Meutya Hafid, views the budget cut not as a burden but as a challenge to find more efficient ways of working.
“Basically, this is an exciting challenge for us. There is still a lot of room for efficiency without reducing the effectiveness of our work,” she said.
