Ministry/Institutional Budget 2025 Increases Significantly After Sri Mulyani Meets Prabowo

Minister of Finance Sri Mulyani Indrawati and President-elect Prabowo Subianto. (Photo: Doc. ANTARA)

JAKARTA - Finance Minister Sri Mulyani met with Elected President Prabowo Subianto on Monday, September 9 and brought fresh air to the budget structure of the Ministry/Institution (K/L).

The K/L expenditure budget, which was originally in the temporary posture of the 2025 State Revenue and Expenditure Budget Draft (RAPBN) amounting to Rp1,094.65 trillion, increased significantly to Rp1,160.08 trillion.

Meanwhile, non-K/L spending experienced a drastic reduction to Rp1,541.35 trillion from the previous Rp1,606.78 trillion.

"Considering that this process is gradual from the RAPBN, which amounted to Rp976 trillion for K/L spending, then there was progress following the discussions held by the Minister of Finance with the last elected President yesterday afternoon," said Director General of Budget of the Ministry of Finance Isa Rachmatarwata during a meeting with the DPR's Budget Agency (Banggar), Tuesday, September 10.

Isa said that the increase in K/L spending would not cause changes to the draft budget deficit of Rp616.19 trillion or 2.53 percent of GDP, because the increase in K/L spending only shifted the budget allocation post from the previous one in non-K/L shopping.

"So there is a very significant increase, with the itself non-K/L expenditure from the previous Rp1606.8 trillion to Rp1,541.4 trillion, with details for non-K/L spending practically no change except of course the management of other expenditures has decreased because we have partially shifted it to K/L spending from Rp556.7 trillion to Rp491.2 trillion," he explained.

In addition, Isa emphasized, the education budget is still IDR 724.3 trillion, while the allocation of functions, priority fields, and types of expenditure will be in accordance with the agreement of the Central Government Expenditure Committee (BPP).