Keep the State Budget Healthy, the Minister of Finance Limits the New Budget of Ministries/Institutions

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa has limited the submission of new budgets by ministries/institutions (K/L) to maintain the health of the State Budget (APBN) amid geopolitical turmoil in the Middle East.

"I will limit the new budget, do not submit it again," Purbaya told reporters at the Directorate General of Taxes, Ministry of Finance, Jakarta, Saturday.

This restriction is carried out simultaneously with the budget efficiency policy for K/L expenditures.

Initially, the percentage of budget cuts for each K/L was targeted at 10 percent. However, Purbaya admitted that he was still studying the decision on the amount of budget cuts for government spending.

"We are counting, all ministries. We originally proposed that they submit (efficiency) 10 percent. But, if I offer them, they do not cut but continue to add. Yes, I said, I cut it, then they will adjust it. The percentage is again discussed," explained the Minister of Finance.

He added that the policy of efficiency in spending and restrictions on the submission of K/L budgets would be carried out while still paying attention to economic needs, so that the national economy would remain maintained.

"We ensure that government spending that must be spent on time. Not the one that is cut, yes. We ensure that the liquidity in the economic system is well maintained. That's what I monitor daily in our place," he said.

The discussion of the percentage of budget cuts was previously delivered by Purbaya at the Presidential Palace complex, Jakarta, Thursday (19/3) afternoon.

Purbaya explained that the Ministry of Finance would comb through the components of spending that were considered to be temporarily postponed. The focus on efficiency targets programs that do not have a significant impact or have a slow acceleration on national economic growth.

According to the Minister of Finance, this policy covers various aspects of operational spending, including internal activities that are not urgent.

"Various. Meetings are unclear, or policies that have a slow or not much impact on economic growth, we can postpone," he said.

In addition to efficiency at the program level, the discourse on cutting the salaries of ministers and deputy ministers also emerged as part of state budget savings. Purbaya expressed his support for the proposal as a concrete step of solidarity between state officials in saving spending.