Budget Efficiency Drives National Economic Growth
Jakarta – The Prabowo-Gibran government has set a budget efficiency policy in several ministries and institutions. The goal is to create a work system that is more adaptive, efficient, and responsive to the needs of the community. President Prabowo ensured that budget efficiency will provide direct benefits to the community and significantly drive national economic growth.
The budget efficiency target is stated in Presidential Instruction (Inpres) Number 1 of 2025 concerning Spending Efficiency in the Implementation of the State Budget (APBN) and the Regional Budget (APBD) for the 2025 Fiscal Year.
The main points of the Inpres directive are the determination of a budget efficiency target of IDR 306.69 trillion, consisting of IDR 256.1 trillion from the ministry/institution budget, IDR 50.59 trillion from transfers to the regions.
A number of state officials, starting from the Red and White Cabinet ministers, the TNI Commander, the Chief of Police, the Attorney General, to governors, regents, and mayors are directed to implement budget efficiency measures in various sectors.
Minister of Finance (Menkeu), Sri Mulyani Indrawati said that the President instructed a budget cut of IDR 306.69 trillion in 2025 through Presidential Instruction Number 1 of 2025. President Prabowo also emphasized that the use of the APBN must focus on direct benefits for the community and strengthening the economy.
“This policy aims to increase the efficiency of state spending and divert funds to infrastructure development,” said Minister of Finance Sri Murlyani.
Sri Mulyani also explained that budget efficiency is carried out by reducing ceremonial spending, official travel, maintenance, and activities that do not have a major impact. In addition, budget efficiency also includes the procurement of office stationery, meetings, seminars, and ceremonial activities. The funds from the efficiency will be allocated for productive spending that supports economic growth and industrialization.
“The budget reallocation is intended to be more productive for economic growth, job creation, and industrial downstreaming,” said Minister of Finance Sri Murlyani.
The government has thoroughly reviewed the budget efficiency policy so that the allocation is clear. The budget that is cut will be diverted to priority programs such as Free Nutritious Meals, food self-sufficiency, and the health sector.
Meanwhile, Deputy Minister of Finance, Suahasil Nazara said that President Prabowo saw the potential for efficiency in state spending and asked to review the budget allocation that could be adjusted.
“Budget efficiency should not reduce the quality of performance, but rather must reorganize the work process to be more effective by utilizing technology,” explained Suahasil Nazara.
According to Suahasil Nazara, the Ministry of Finance must review the work program so that it remains in line with national priorities and ensures that the budget is used for primary interests. Efficiency is not just about budget cuts, but how to work smarter, more strategically, and responsibly so that the Ministry of Finance remains respected.
The budget efficiency policy must be implemented by all ministries or institutions at the central to regional levels. This policy clearly prioritizes the interests of the nation and state. All elements of society also need to oversee the budget efficiency policy so that its realization is in accordance with the target and has a positive impact evenly, especially for national economic growth.
