Prabowo's Younger Brother Says The Government Will Perform Budget Efficiency Every Year

Presidential Special Envoy for Climate and Energy and President Prabowo Subianto's younger brother, Hashim Djojohadikusumo

JAKARTA - The government has made budget efficiency of around US$20 billion or Rp326 trillion (exchange rate of Rp. 16,300) in early 2025.

Presidential Special Envoy for Climate and Energy as well as President Prabowo Subianto's younger brother, Hashim Djojohadikusumo, said that this savings will continue every year to reduce budget leaks for activities that are not too important.

"The USD 20 billion fund is this year. Next year, Pak Prabowo and the government are optimistic that there will be an additional USD 20 billion and USD 20 billion every year," he said at the CNBC Economic Outlook 2025 event, Wednesday, February 26.

"Why? Because our state budget will still grow. But leaks, fats, fats, fats, ridiculous programs. That will still be abolished. So this 20 billion US dollars every year," he continued.

Hashim said, if the budget efficiency of 20 billion US dollars is carried out every year within a period of 5 years of government, then Indonesia has the potential to obtain equity of up to 100 billion US dollars.

"So this 20 billion US dollars every year. 5 years 100 billion US dollars is the equity of the Indonesian nation. That's equity. If possible, we will cooperate with investors through the intermediary. If the co-investment is 20 billion US dollars and foreigners are 20 billion US dollars, 40 billion US equity," he explained.

Hashim said that such a large fund can be managed in Danantara to be invested so that it can grow up to 3-4 times and Indonesia could generate more than 100 billion US dollars per year.

"Danantara co-invest 50 percent with foreigners. 20 billion US dollars plus 20 billion US dollars, that's 40 billion US dollars, right? That's equity, us. And then we live 3 times, 4 times. Maybe the state can be more, if the private sector can't. That means projects, 40 billion US dollars equity, multiplied by 3-4. That's 160 billion US dollars per year," he explained.

According to him, this makes him optimistic that Indonesia's economic growth can increase with Danantara's support.

In addition, Hashim is also optimistic that Danantara can become one of the most successful sovereign wealth funds (SWF) in the world.

"This is 20 billion US dollars a year. Because the APBN is still. But for this fat, seminars are not necessary, overseas travel is not necessary, comparative studies are not necessary. ATK is not necessary. It's a lot of fat. I think it's getting more optimistic," he said.