Prabowo: APBN Saves Rp308 Trillion from Cutting Unproductive Spending

JAKARTA - President Prabowo Subianto stated that the government could save up to Rp308 trillion in the budget after implementing efficiency policies by cutting unproductive spending posts.

In a discussion session with several journalists and economists at President Prabowo's private residence, Hambalang, Bogor Regency, West Java, this week, President Prabowo explained that the massive efficiency of the state's revenue and expenditure budget (APBN) aims to save people's money from potential criminal acts of corruption.

"The first time we did efficiency, we saved Rp308 trillion from the central government. Where did it come from? From all the expenses that are unreasonable. My belief, all of this Rp308 trillion, if it is not cut, this is towards corruption," said President Prabowo when discussing the issue of efficiency in the event entitled "President Prabowo Answers", as quoted from the official broadcast of the Indonesian Government Communication Agency reported by ANTARA.

The President explained that the need for efficiency was seen in the ICOR Indonesia score which tends to be higher than neighboring countries.

ICOR or Incremental Capital Output Ratio (ICOR) is an indicator that shows the level of efficiency of a country's budget use. The lower the ICOR score, the more efficient the country can be in using its budget.

Indonesia, said President Prabowo, has a score of 6.5, while neighboring countries, such as Thailand and Malaysia, have 4, and Vietnam 3.6.

Looking at the state budget which is close to Rp3,700 trillion (about 230 billion US dollars), President Prabowo estimates that budget inefficiency reaches approximately 30 percent or about 75 billion US dollars.

"So, this figure means 30 percent, more inefficient than Thailand, Malaysia, the Philippines, or Vietnam. If I use this as a basis, it means approaching our GDP of Rp3,700 trillion or 230 billion US dollars. Around 30 percent of it is then 75 billion US dollars. This is inefficient," said the President.

On the same occasion, the President then explained the unproductive shopping posts that had been cut, including the purchase of office stationery, meeting and seminar expenses outside the office, and the habit of procuring goods, such as computers and office equipment, which are carried out almost every year.

Not only that, the President also found studies that did not touch on the main issues, such as poverty and employment.

Therefore, the President emphasized that the efficiency policy would continue to be maintained given the threat of a crisis that many countries, including Indonesia, would experience.

Several countries, the President said, have anticipated the potential crisis by issuing policies to reduce working days and implementing a work from home (WFH) system.

"I see other countries, for example, working five days a week, four (days), the Philippines, Pakistan. Then work from home, work from home. During COVID we did it quite successfully. I think we can do that too. Maybe 75 percent of employees or employees can work from home," said the President.