Budget Efficiency Helps Suppress Inflation and Manage State Finances More Optimally

Jakarta – The budget efficiency policy instructed by President Prabowo Subianto is considered to be the initial step in more optimal state financial management. This was stated by an Economist and Public Policy Expert at UPN Jakarta, Achmad Nur Hidayat.

Achmad said that budget efficiency is expected to provide direct benefits to the community. Funds from budget savings are allocated to strengthen public welfare programs, such as social assistance and energy subsidies.

“This policy will help suppress inflation and maintain the stability of basic necessities prices, so that the community is not burdened by price increases caused by overly tight fiscal policies,” he explained.

Previously, President Prabowo Subianto asked ministries and institutions to carry out budget efficiency for programs whose benefits and advantages cannot be measured.

Head of the Presidential Communications Office, Hasan Nasbi said that the program is like reducing overseas travel activities, official travel, and ceremonial activities.

“However, public services are not reduced. PSO (Public Service Obligation) and employee salary spending are not reduced,” said Hasan.

Hasan dismissed the circulating information that budget efficiency was allocated for public services. He reiterated that the president requested that public services, employee spending, and social assistance not be affected by efficiency.

Similarly, Minister of Finance, Sri Mulyani Indrawati said that President Prabowo decided on budget efficiency after overseeing the implementation of the APBN book closing at the Ministry of Finance at the end of 2024.

“Savings are made by reducing ceremonial spending, official travel, maintenance, and activities that do not have a major impact,” he said.

He explained that the budget that was cut would be diverted to priority programs such as Free Nutritious Meals, food self-sufficiency, and the health sector.

Deputy Minister of Finance, Suahasil Nazara also assessed that efficiency is not just about budget cuts, but how to work smarter, more strategically, and responsibly so that the Ministry of Finance remains respected.

“Budget efficiency should not reduce the quality of performance, but rather must reorganize the work process to be more effective by utilizing technology,” he concluded.