Deputy Minister Of Finance Suahasil Reveals Budget Efficiency Is The Key To Reaching Economic Growth Targets

Rupiah (photo: dock. Antara)

JAKARTA - The Ministry of Finance (Kemenkeu) revealed that it is combing through state spending which can create higher economic growth to achieve the target of 8 percent.

Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said that to achieve this goal, there needs to be a good orchestration and currently APBN spending this year is projected to reach around IDR 3,621.3 trillion or 15 percent of GDP.

According to him, it is very important to choose the right budget allocation, with a focus on crucial priorities.

"The role of the state budget must be that the support and the state budget will continue to be supportive to the economy, creating a larger gross domestic product, 15 percent of the state budget creates 85 percent of other economies so that the total will be 100 percent," he said in CNBC Indonesia Economic Outlook 2025, Wednesday, 26 February.

Therefore, Suahasil conveyed that the role of the State Budget must continue to support the economy and be flexible in dealing with global uncertainty, while maintaining good governance, transparency, and accountability.

According to him, in the 2025 fiscal year, budget efficiency is one of the main focuses, namely by ensuring that each budget is used for priority activities that are really needed.

The government is reviewing the budget for various activities such as official travel, ATK budget, seminars, and honorariums, to ensure the right allocation. Of course, the budget for activities that are indeed needed will not be deleted, but will be re-evaluated to make it more efficient.

"First is an efficient budget. Is it a more efficient budget? A more efficient budget, is a budget that is really used, really used for priority and necessary activities. What can we make efficient? It turns out that there is and this is what we are doing now, minimizing inefficiency," he said.

Suahasil added that several sectors that will not be affected by budget efficiency are personnel spending, social assistance, education, health, scholarships, public services will also continue.

According to him, this is expected to make the state budget healthier and enable an increase in productive spending.

Suahasil said that one of the results of the budget efficiency will be used for the Free Nutrition Food (MBG) program which will encourage economic growth and absorption of local workers.

Then for the program to provide 3 million houses, Suahasil said that this program will create large multipliers because it absorbs a lot of workforce and revives various kinds of residential industries.

"We know that President Prabowo's target is to build the Indonesian economy, grow the Indonesian economy by 8 percent, even earlier Mr. Hashim said it was above 8 percent because we believe the potential is above 8 percent, we have to orchestrate this well," he said.