Budget Cut, Bahlil Proposes To Lower Investment Target To IDR 800 Billion In 2025

Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia. (Photo: Doc. ANTARA)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia proposed that the 2025 investment target in the government's work plan (RKP) be revised from Rp1,850 trillion to Rp800 billion.

Bahlil said the revision needed to be made because the budget of the Ministry of Investment set by the Ministry of Finance and the Ministry of National Development Planning/Bappenas was not in accordance with the investment target set.

The indicative ceiling of 2025 of the Ministry of Investment/BKPM set by the Ministry of Finance and Bappenas is IDR 681 billion. Meanwhile, the Ministry of Investment's budget in 2024 is set at IDR 1.2 trillion with an investment target of IDR 1,650 trillion.

"With the existing budget basis, I lowered the RKP, I corrected it to Rp800 billion. I want to say that in this honorable forum the RKP created by Bappenas and the Minister of Finance of Rp1,850 trillion is not inherently lined up with the budget given," he said in a working meeting with Commission VI of the DPR, at the Parliament Complex, Jakarta, Tuesday, June 11.

In fact, 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.

"Now it has been increased (the investment target) but the budget has been lowered to more than Rp680 billion, this is what makes me confused," he said.

Bahlil also admitted that he did not want to marry his subordinates at the Ministry of Investment to pursue investment targets. In fact, until the new government when he stepped down.

"I don't want to make my staff a scapegoat. During the meeting, members then asked why they were given a burden but they were not given facilities. If I say God willing, I will live a long life until October is over, if they are continued (until the next government)," he explained.