Budget Efficiency Optimizes State Budget Allocation for Public Welfare

JAKARTA – The government has set a strategic policy to optimize the use of the State Budget (APBN) through Presidential Instruction (Inpres) Number 1 of 2025. The main focus of this policy is to strengthen the productive sector and support digital transformation in order to increase national competitiveness and accelerate economic growth.

The Minister of State Apparatus Empowerment and Bureaucratic Reform, Rini Widyantini, emphasized that budget efficiency is the key to strengthening the productive sector and improving bureaucratic performance.

“Budget cuts are made to ensure that every rupiah allocated is truly used optimally in supporting the productive sector and increasing the efficiency of state apparatus work,” said Rini

She also added that digital transformation is one of the strategic steps in this efficiency effort.

“Modernization of the bureaucratic work system through digital transformation will reduce operational costs and increase the effectiveness of public services, so that the productive sector gets maximum support from advances in information technology,” explained Rini.

Minister of Finance, Sri Mulyani Indrawati, explained that this budget efficiency policy was established after President Prabowo Subianto conducted a comprehensive evaluation of the implementation of the 2024 State Budget. She revealed that the budget cuts of IDR 306.69 trillion in 2025 were carried out to divert funds to priority programs that provide direct benefits to the community.

“Budget allocation must be focused on programs that have a direct impact on people’s welfare and economic growth. The budget that is cut will be diverted to support priority programs such as Free Nutritious Meals, food self-sufficiency, and strengthening the health sector that contributes to national economic stability,” said Sri Mulyani.

She emphasized that budget efficiency is not just about cutting state spending, but also ensuring that every expenditure has a real impact on national development.

“The use of the State Budget must be more targeted so that the investments made truly provide optimal benefits to the community,” she added.

Similarly, Minister of Public Works and Public Housing, Dody Hanggodo, ensured that budget efficiency would not hinder national infrastructure development.

“Despite budget adjustments, infrastructure projects are still running optimally because financial planning is carried out carefully. This is to ensure that every strategic project is completed on time and continues to support the economy,” Dody emphasized.

Dody also explained that budget optimization is carried out transparently and effectively.

“We ensure that the infrastructure built can be integrated with the irrigation system to support the agricultural sector and significantly increase national productivity,” Dody added.

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