President Prabowo Subianto has again 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 regulation immediately took effect when it was issued on January 22, 2025.
The rules are addressed to the Ministers of the Red and White Cabinet, the Commander of the Indonesian National Armed Forces, the Head of the Indonesian National Police, the Attorney General of the Republic of Indonesia, the Heads of Non-Ministerial Government Institutions, the Heads of the Secretariat of State Institutions, the Governors, and the Regents/Mayors.
The directives are requested to carry out reviews according to their respective duties, functions, and authorities, in the context of efficiency in the budget, Ministries/Institutions (K/L), Regional Budget and Transfers to Regions in the State Budget for Fiscal Year 2025, based on the provisions of the legislation.
The efficiency directive is contained in the second instruction point, namely efficiency in the state budget for the 2025 Fiscal Year of IDR 306.69 trillion.
"The efficiency in the state budget for the 2025 Fiscal Year is IDR 306,695,177,420,000," he wrote in President Prabowo's Instruction issued on January 22, 2025, quoted Wednesday, January 23.
The regulation explains the details of the total budget cut of IDR 306.69 trillion from the total 2025 state expenditure of IDR 3,621.3 trillion.
The efficiency consists of a K/L budget of IDR 256.10 trillion, and a TKD of IDR 50.59 trillion.
Furthermore, in the third dictum, the Presidential Instruction instructs all Ministers/Leaders of Institutions to identify the Ministry/Institution's spending efficiency plan according to the amount set by the Minister of Finance.
Identification of efficiency plans includes operational and non-operative spending, at least consisting of office operational expenditures, maintenance spending, official travel, government assistance, infrastructure development, and procurement of equipment and machinery.
Then, the identification of the efficiency plan as referred to does not include the expenditure of employees and spending on social assistance.
Budget efficiency is prioritized for expenditure apart from the budget sourced from loans and grants and Rupiah Murni Assistance unless it cannot be implemented until the end of the 2025 Fiscal Year.
Next, the budget sourced from Non-Tax State Revenue of Public Service Agency (PNBP-BLU) except for those deposited into the state treasury for Fiscal Year 2025.
Furthermore, the budget is sourced from State Sharia Securities (SBSN) and becomes an underlying asset in the context of issuing SBSN.
SEE ALSO:
In the dictum, conveying the results of the identification of the budget efficiency plan as referred to in number 1 to the partners of the House of Representatives Commission for approval.
Then, submit the proposed budget revision in the form of budget blocking according to the amount of budget efficiency of each Ministry/Institution that has received approval as referred to in number 5 to the Minister of Finance no later than February 14, 2025.
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