Government Efficiency Policy Successfully Cuts Budget Waste

By: Janu Farid Kesar

The budget efficiency policy implemented by the government has shown real results in reducing waste of state funds and diverting the budget to more productive sectors. This step is not only a wise fiscal strategy, but also a form of commitment to improving public welfare.

With this policy, funds previously used for activities with less impact can now be diverted to more beneficial development, such as the education and agriculture sectors. This effort also invites the public to better understand the importance of efficiency in the use of the state budget.

Head of the Presidential Communications Office Hasan Nasbi emphasized that this budget efficiency step aims to increase national productivity and revive the economic sector. According to him, reducing the government’s travel budget by 50 percent from a total of IDR 44 trillion per year can result in savings of around IDR 20 trillion.

These funds can then be used to build 10 thousand schools in various regions in Indonesia. This proves that the budget efficiency policy is not just about savings, but also reallocation for greater interests.

Not only education, the agricultural sector is also one of the beneficiaries of this budget efficiency. The funds saved from official travel can be used to purchase up to 3 million tons of grain from farmers at a minimum price of IDR 6,500 per kilogram.

This step also helps improve farmers’ welfare and ensures the stability of the national food supply. In fact, this efficiency also allows the government to increase the subsidized fertilizer quota to 9.5 million tons, which can help farmers increase their agricultural production.

In addition, Hasan Nasbi highlighted the habit of ineffective budget spending, especially towards the end of the year. He assessed that many government agencies tend to spend their budgets in a hurry without careful planning, especially in October, November, and December. The efficiency implemented aims to reduce this kind of wasteful pattern without sacrificing government performance.

He also appreciated the Food and Drug Supervisory Agency (BPOM) as one of the institutions that has succeeded in implementing efficiency without disrupting its operations. For example, the testing laboratory continues to run optimally with efficient electricity use, which is only turned on when needed.

Support for this efficiency policy also came from the Ministry of Immigration and Corrections (Kemenimipas). Minister of Immigration and Corrections Agus Andrianto stated that his ministry has proposed a budget cut of IDR 4.49 trillion from the initial ceiling of IDR 15.96 trillion to IDR 11.46 trillion.

This cut was made by reducing goods spending by 55.9 percent and capital spending by 45 percent, without reducing employee spending. According to him, this step is in line with the government’s priority programs, such as food and energy self-sufficiency, as well as investment in human resources through the Free Nutritious Meals program.

Despite the budget cuts, Kemenimipas remains committed to increasing state revenues. In 2024, the ministry recorded a Non-Tax State Revenue (PNBP) deposit of IDR 9 trillion, which is the highest achievement in the history of the institution. Not only in the fiscal aspect, Kemenimipas also supports food security through the Food Barn program managed by inmates in detention centers and prisons.

One of the largest is in the Nusakambangan Penitentiary, where 115 hectares of land have been used for the agriculture, livestock, and fisheries sectors. Although this program has not contributed significantly to national food availability, at least it has been able to meet food needs in the detention and prison environments.

In addition to budget efficiency and support for food security, the Ministry of Immigration and Penitentiary Services also continues to optimize digitalization in public services. Minister Agus Andrianto emphasized that the digitalization system in processing passports, visas, and residence permits has received widespread appreciation from the public. This digitalization not only speeds up the administrative process, but also reduces operational costs significantly, which is in line with the principle of budget efficiency.

Meanwhile, Bank Indonesia DKI Jakarta emphasized that the efficiency policy stipulated in Presidential Instruction (Inpres) Number 1 of 2025 does not immediately eliminate existing programs.