The Government Is Asked To Anticipate The Impact Of Budget Efficiency

A number of workers crossed the road in the HI Roundabout area, Jakarta, Wednesday (11/12/2024). BETWEEN

JAKARTA - The Social Security Institute or the Social Security Institute recommends that the Government anticipate the impact of budget efficiency policies so as not to cause new problems in the economic ecosystem structure and community welfare.

"The Social Security Institute hopes that the government can immediately anticipate the impact of the budget efficiency," said Jamsos Institute Executive Director Andy William Sinaga as received in Jakarta, Saturday.

He said that anticipation of Presidential Instruction Number 1 of 2025 concerning State Budget Efficiency needs to be carried out so that it does not have a major impact, especially on massive worker reductions.

The Social Security Institute predicts that there will be relegation of the economic ecosystem such as purchasing power or people's purchasing power which will decrease.

This has the potential because public income is considered to have decreased due to job loss or termination of employment (PHK), especially in the hotel services sectors whose occupancy has decreased due to mitigation of government institutions programs, both central and regional, carrying out activities in hotels.

"This will make supply chain in the hotel service business affected. Like it or not, they will reduce workers or layoffs," he said.

The Jamsos Institute also predicts that thousands of honorary workers, both in central and regional government institutions, will lose their jobs due to work contracts that are not extended due to government budget efficiency.

The majority of government honorary workers who have lost their jobs are already married so that they will affect the welfare of the families of the honorary workers

In addition, the Jamsos Institute reminded that budget efficiency will degrade the ministry's work program. This is very dangerous when the ministry's program has a direct impact on community groups at grassroots.

"Such as improvements to infrastructure facilities, road transportation, bridges, degradation of agricultural production and food in the medium-sized small business sector, cooperatives, due to the education and assistance assistance program which has decreased clearly.

Therefore, the Jamsos Institute hopes that the government can immediately anticipate the impact of the budget efficiency, especially the massive reduction of honorary workers in central, regional and state-owned enterprises (BUMN) and Public Services (BLU) institutions which are predicted to be increasingly massive in number.

"The temporary strategy that must be carried out by the government immediately is to encourage BPJS Employment to be proactive in providing Job Loss Guarantee Program (JKP) services for workers who have lost their jobs as a result of the efficiency of the government budget," Andy said.

On the other hand, Finance Minister Sri Mulyani Indrawati said the government would conduct further research so that there would be no termination of employment (PHK) for honorary staff within the Ministry/Institution (K/L).

The effort was carried out in line with instructions to K/L to make efficiency in the 2025 fiscal year.

"Further research will be carried out on the efficiency steps of ministries/agencies (K/L), so as not to affect spending on honorary staff and continue to carry out according to the president's direction, namely good public services," Sri Mulyani said at a press conference at the DPR RI Building, Jakarta, Friday (14/2).

He said that there were no layoffs on honorary workers in the K/L environment in line with the government's budget efficiency.

"PHK honorary at K/L is hereby conveyed that there are no layoffs in the K/L environment. We ensure that the efficiency or reconstruction of the K/L budget is not affected by honorary staff," said Sri Mulyani.

Previously, President Prabowo Subianto instructed the government's budget efficiency of IDR 306.69 trillion in the APBN and APBD for Fiscal Year 2025 to maintain fiscal stability and support more optimal public services.

The target is contained in the document of a copy of Presidential Instruction (Inpres) Number 1 of 2025 concerning the Efficiency of Expenditures in the Implementation of the State Revenue and Expenditure Budget (APBN) as well as the Regional Revenue and Expenditure Budget (APBD) for Fiscal Year 2025.

Through the Presidential Instruction, the President directed a number of state officials, ranging from the ministers of the Red and White Cabinet, the TNI Commander, the National Police Chief, the Attorney General, to governors, regents, and mayors to carry out budget efficiency measures in various sectors.