Government Budget Efficiency Solution to Realize Economic Stability
Jakarta – President Prabowo Subianto has issued Presidential Instruction of the Republic of Indonesia Number 1 of 2025 which contains a policy on spending efficiency in the implementation of the 2025 State Budget and Regional Budget.
This step is expected to increase the effectiveness of budget management and support priority government programs optimally.
Paramadina University Economist, Wijayanto Samirin, assessed this efficiency policy as a positive step that can direct development more in line with national priorities.
“Reallocation of State Budget spending will benefit some parties, while others may be disadvantaged, but at least the direction of development will be more in line with what the government wants,” he said.
However, he also noted that if not managed properly, reallocation of state spending can suppress economic growth.
“For example, reducing meeting costs and official travel will have a major impact on the hotel and transportation sectors,” explained Wijayanto.
Minister of Finance, Sri Mulyani Indrawati, also explained that President Prabowo asked for budget cuts to be carried out selectively.
Spending that has a direct impact on public welfare must continue to be strengthened.
“Such as the provision of free nutritious food, food and energy self-sufficiency, improving the health sector, and efforts to improve the quality of human resources,” said Sri Mulyani.
On the other hand, the President’s Special Advisor for Economic Affairs, Bambang Brodjonegoro, appreciated this massive efficiency step. According to him, the policy is a positive step in managing state finances.
“As an advisor, I really appreciate the massive budget efficiency efforts that have been carried out. Because I have also led a ministry, sometimes I feel that our budget is not efficient enough,” said Bambang.
Bambang even gave an example of his experience while working at the Islamic Development Bank in Jeddah, where meetings and conferences only provided water or tea without additional consumption.
He saw that simple habits like this could be applied in various aspects of government spending to reduce costs.
However, he also reminded that government spending, including consumption sourced from the budget, acts as an economic stimulus. “When there is a budget, it actually becomes one of the drivers of economic growth,” he said.
According to Bambang, massive budget cuts mean that economic growth in 2025 can no longer rely solely on consumption, especially after the end of the election period.
“The successful execution of priority programs such as free nutritious food and the construction of three million houses will be the key to economic stability,” he said.
