Prabowo Pangkas Budget Of IDR 306 Trillion, Ministry Of Finance: Reduce Businesses

Illustration (Photo: Doc. ANTARA)

JAKARTA - President Prabowo Subianto cut the State Revenue and Expenditure Budget (APBN) and the Regional Revenue and Expenditure Budget (APBD) for the 2025 fiscal year amounting to IDR 306.69 trillion.

The policy is contained in the presidential instruction (Inpres) number 1 of 2025 concerning the Efficiency of Expenditures in the Implementation of the State Budget and Regional Budget for the 2025 fiscal year.

The rule took effect immediately when it was issued on January 22, 2025.

Head of the Communication and Information Services Bureau of the Ministry of Finance (Kemenkeu), Deni Surjantoro explained, budget cuts of IDR 306.69 trillion aim to manage the APBN prudently, as well as increase the efficiency of state spending in all sectors.

"By reducing waste and reducing non-priority spending, we are more vigilant about facing challenges in the future that will be uncertain," said Deni, Thursday, January 23.

Deni added that the purpose of optimizing this budget is also to support government programs in improving people's welfare, including to ensure that subsidies and social protection are more targeted and fair.

According to Deni, for the stages, each leader of the Ministry/Institution (K/L) will identify their spending efficiency plan.

After that, the plan will be submitted to commission partners in the DPR to obtain approval for budget revisions through budget blocking, which will then be submitted to the Ministry of Finance no later than February 14.

Therefore, Deni said that blocking this budget would determine programs that would be prioritized.

"So the stages must block the budget first and then it is determined that it will be used for any program. So the budget will not be moved immediately," he said.

Deni also explained that this step does not require changes in the Revised State Budget (APBNP), because what is done is efficiency in the existing budget.

This is a positive step that is expected to get public support, given the importance of budget efficiency.

Deni said that the Rp306.69 trillion budget cuts will take effect for the 2025 Fiscal Year.

"No (need to go through the APBNP), because we just need to make what is already there, so we don't change anything. This is a positive thing, the public must support it, because we really need to streamline our budget," he said.