Bahlil Confused That Investment Target Increased To IDR 1,850 Trillion, But The Ministry's Budget Was Cut

Investment Minister Bahlil Lahadalia (Photo: dock. Antara)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed that the investment target in 2025, during the Prabowo Subianto-Gibran Rakabuming Raka administration, was increased to Rp1,850 trillion.

Bahlil said the target was contained in the Government Work Plan (RKP) 2025. He also admitted that he was confused because of the increase in investment targets, but the ministry's budget was cut.

"How is it possible that the investment target was increased by Rp1,850 trillion, the budget was lowered from the target of Rp1,400 trillion in 2023 with a budget of more than Rp1.2 trillion, now it has been increased (the investment target) but the budget has been lowered to more than Rp690 billion, this is what makes me confused," he said in a working meeting with Commission VI of the DPR, at the Parliament Complex, Jakarta, Tuesday, June 11.

According to Bahlil, the increase in investment targets should be accompanied by an increase in the budget. This means that between the target and the ministry's budget allocation must be equal. Moreover, investment is the driving force for economic growth.

"What happens to the leadership if we look at our budget base, it's an increase in the investment target burden, but it's accompanied by an increase in the budget," he said.

"Well, this is 2025, I just found a rich economic theory like this. We learned all this because of that I won't talk much at today's meeting, because I haven't found the theory yet. If the leadership and all the members of the DPR have a new theory, please teach me," he continued.

Based on Bahlil's explanation, the indicative ceiling of the Ministry of Investment in 2025 is IDR 681 billion. The budget is used for the management support program of IDR 359 billion. In detail, employee operational expenditure is IDR 252 billion. Then, operational expenditure for goods of IDR 107 billion.

Furthermore, the budget allocation for the investment program is IDR 322 billion. The details, for priority IDR 222 billion. Then, the non-national priority is IDR 100 billion.