Budget Efficiency, Smart Policy for Targeted Development
Jakarta – The government continues to promote budget efficiency policies to increase the effectiveness of state financial management. This strategic step, which was directly instructed by President Prabowo Subianto, aims to ensure that the state budget is allocated to priority sectors that truly support national development in a more targeted and sustainable manner.
The Minister of Finance, Sri Mulyani Indrawati, explained that this efficiency decision was taken after President Prabowo reviewed the 2024 State Budget year-end report at the Ministry of Finance.
“Every rupiah in the State Budget must provide direct benefits to the community and strengthen the foundation of the national economy. With proper efficiency, we can ensure that development is more targeted, in accordance with the needs of the community and the country’s long-term targets,” said Sri Mulyani.
As part of this policy, the government will cut spending that is considered less productive, such as official travel, maintenance, and various ceremonial activities. The funds that have been saved will be allocated to priority programs that have a real impact on economic growth and public welfare, such as strengthening the national industry, accelerating infrastructure development, and improving health and education services.
Through Presidential Instruction (Inpres) Number 1 of 2025, the government is targeting budget efficiency of IDR 306.69 trillion next year. This policy aims to focus state spending more on productive sectors that can increase economic competitiveness, create jobs, and accelerate the realization of national strategic programs.
Economist and Public Policy Expert from UPN Jakarta, Achmad Nur Hidayat, welcomed this policy as a concrete step to improve the quality of state spending.
“This policy is not just about savings, but ensuring that every rupiah from the APBN is truly used to accelerate targeted and sustainable national development,” he said.
In line with Achmad Nur, Political and Government Observer from Jenderal Achmad Yani University (Unjani) Cimahi, Arlan Siddha, also emphasized the importance of ensuring budget efficiency truly leads to the public interest.
“Budget cuts do not mean reducing services, but rather diverting funds to sectors that provide direct benefits to the people and encourage more effective development,” he explained.
Meanwhile, Executive Director of Indonesia Political Opinion (IPO), Dedi Kurnia Syah assessed that efficiency in state spending can reduce non-essential spending and ensure that public funds are used for projects that have a broad impact.
“A number of budgets are often absorbed for less productive activities. With this efficiency, these funds can be allocated to accelerate infrastructure development, improve public services, and strengthen economic resilience,” he said.
In addition to cutting official travel, efficiency also includes reducing spending on office stationery, seminars, and non-urgent meetings. The funds from these savings will be diverted to priority government programs, including Free Nutritious Meals, food self-sufficiency, and regional industrial and economic development.
Through this policy, the government seeks to ensure that the use of the APBN is more effective, strengthen fiscal stability, and encourage more targeted and sustainable national development for the welfare of the wider community. //
