Maintain Fiscal Stability, Government Implements Gradual Efficiency Policy

JAKARTA – The Indonesian government under the leadership of President Prabowo Subianto continues to take strategic steps to maintain fiscal stability.

One of the main policies implemented is state spending efficiency as stipulated in Presidential Instruction (Inpres) Number 1 of 2025 concerning Spending Efficiency in the Implementation of the 2025 State Budget and Regional Budget.

With this policy, the government is targeting budget savings of up to IDR 306.6 trillion.

The efficiency policies implemented include reducing travel expenses by up to 50 percent, limiting ceremonial activities and Focus Group Discussions (FGDs), and reducing honorariums for work teams.

Economist and financial market observer, Ibrahim Assuabi, considers this policy to be a positive step in controlling the budget deficit.

“The government currently needs large spending for various development programs. If it is not balanced with efficiency, more and more bonds will have to be issued to cover the budget,” he said.

He added that with the efficiency of state spending, the budget deficit can be reduced and dependence on foreign debt can be reduced.

However, on the other hand, Ibrahim also reminded that this policy has the potential to impact the business sector which has so far depended on cooperation with the government.

Nevertheless, he believes that these savings will provide greater fiscal space for the government to carry out priority programs.

Minister of Finance, Sri Mulyani, emphasized that this efficiency step is not only aimed at saving the budget, but also to increase accountability for state spending.

“With this policy, we can improve the quality of spending, including in terms of the operational costs of the ministry. In addition, this efficiency can also close the gaps that have the potential to give rise to corrupt practices,” he said.

President Prabowo himself has emphasized the importance of efficiency in state spending several times.

One example of the implementation of this efficiency can be seen in the Ministry of Communication and Digital (Kemkomdigi), which has experienced quite significant budget cuts.

For the 2025 budget year, Kemkomdigi proposed a spending reduction of IDR 4.49 trillion or around 58.17 percent of the total approved ceiling.

Minister of Communication and Digital, Meutya Hafid, considers budget cuts not as a burden, but as a challenge to find a more efficient way of working.

“Basically, this is an interesting challenge for us. There is still a lot of room to make efficiencies without reducing work effectiveness,” she said.