Kadin: Budget Efficiency To Make Sure The Funds Used Are Right And Right

JAKARTA - The Indonesian Chamber of Commerce and Industry (Kadin) revealed that the government's budget efficiency was an effort to ensure that the funds used in the right place.

"I feel that it is part of the government's efforts to ensure that funds are used in the right place. So I think that is indeed a consequence that must be faced," said Chairman of the Indonesian Chamber of Commerce and Industry Anindya Bakrie in Jakarta, quoted by Antara, Thursday, February 13.

Anindya hopes that the state ministry/institution budget can recover gradually after the Indonesian economy and the world bounce back.

"Hopefully after the economy rises again, not only the Indonesian economy but also the world economy, hopefully the budget can return gradually," he said.

The government's policy of budget efficiency is a consequence that must be faced due to uncertain economic situations.

"This is because the economy is uncertain. What is certain is the cost. So the costs that are maintained first, I think it is natural. I think that is a consequence that must be faced in a short time. But if the long consequences of saving are different," said Anindya.

For information, President Prabowo Subianto instructed the government's budget efficiency of IDR 306.69 trillion in the APBN and APBD for Fiscal Year 2025 to maintain fiscal stability and support more optimal public services.

The target is contained in a copy document of Presidential Instruction Number 1 of 2025 concerning Expenditure Efficiency in the Implementation of the State Revenue and Expenditure Budget (APBN) as well as the Regional Revenue and Expenditure Budget (APBD) for Fiscal Year 2025.

Through this Presidential Instruction, the President directed a number of state officials, ranging from the Ministers of the Red and White Cabinet, the TNI Commander, the National Police Chief, the Attorney General, to the Governor, Regent, and Mayor to carry out budget efficiency steps in various sectors.

The main points of the Presidential Instruction, namely the determination of the target for budget efficiency of IDR 306.69 trillion, consisting of IDR 256.1 trillion from the ministry/institutional budget, IDR 50.59 trillion from transfer to the regions.

President Prabowo also instructed restrictions on non-priority spending. Governors, regents, and mayors are asked to limit ceremonial spending, comparative studies, and official travel, with reduced official travel to 50%. In addition, efficiency also targets honorarium spending and supporting activities that do not have measurable output are also limited.

In his instructions, the President directs all ministries/agencies to focus on public service performance. The budget must be focused on improving public services, not just equitable distribution between regional apparatus or based on the previous year's budget pattern.

Finance Minister Sri Mulyani was given the mandate to determine the efficiency of each ministry/institution and adjust the transfer allocation to the regions, including regulating special funds such as the Special Autonomy Fund and Village Funds. The implementation of this Presidential Instruction will be supervised by the Financial and Development Supervisory Agency (BPKP) to ensure good and responsible governance.