Budget Efficiency Reaches IDR 306.69 Trillion, Sri Mulyani Disburses To Improve The Quality Of State Expenditures

Minister of Finance Sri Mulyani. (Photo: Doc. ANTARA)

JAKARTA - President Prabowo Subianto issued regulations regarding the efficiency of the expenditure budget in the Implementation of the State Revenue and Expenditure Budget (APBN) and the Regional Revenue and Expenditure Budget (APBD) for the 2025 fiscal year amounting to IDR 306.69 trillion.

The policy is contained in the presidential instruction (Inpres) number 1 of 2025 concerning the Efficiency of Expenditures in the Implementation of the State Budget and Regional Budget for the 2025 fiscal year.

The rule took effect immediately when it was issued on January 22, 2025.

Minister of Finance Sri Mulyani Indrawati explained that this step aims to improve the quality of state spending or better spending and support the creation of a more equitable welfare.

"It is the focus on improving the quality of spending, we say yes, better spending, quality of spending needs to be done because the state budget that I said earlier is that if it will continue to be an important instrument, the quality of spending, both ministries, institutions, and regions needs to be improved," he said at a press conference, Friday, January 24.

Sri Mulyani conveyed that this budget savings instruction aims to increase the efficiency of budget use and shift spending focus to sectors that have a direct impact on the community, such as providing free nutritious food, improving the food, energy and health sectors, and improving the quality of human resources.

According to him, President Prabowo also advised that the budget for activities that do not have a direct impact on the community, such as ceremonial, official travel, or procurement of unproductive goods to be saved.

"The president also conveyed indications that the APBN needs to be implemented in terms of efficiency and targeting accuracy, and of course reducing various expenditures which are considered to have an impact on improving and strengthening the economy and welfare, improving productivity, creating growth, that needs to be strengthened," he explained.

Sri Mulyani emphasized that this savings is expected to be diverted to more productive spending, which contributes to the creation of job opportunities, economic growth, and community welfare.

":ita akan meminta kementerian lembaga untuk melakukan efisiensi yang cukup dalam, cukup tajam untuk kemudian dari realalokasi ini untuk dilakukan belanja-beli yang lebih produktif," tuturnya.

In this case, Sri Mulyani conveyed that focusing on spending that is directly beneficial to the community, such as free nutritious food programs, is expected to strengthen the local sector, create jobs, and support local-based economic growth.

In addition, Sri Mulyani said that the Government would also coordinate with other parties, including BI OJK, LPS and the financial sector, to support the financing needed to support the program.

Sri Mulyani added that the cutting policy would have a positive impact on economic growth.