Prabowo Orders Budget Efficiency, DKI Provincial Government Opens Option To Reduce Grants For Mass Organizations

President Prabowo Subianto. (Instagram @prabowo)

JAKARTA - The DKI Provincial Government is formulating budget efficiency in a number of expenditure posts in the 2025 APBD. One of them is the allocation of grants.

This follows up on President Prabowo Subianto's instructions for the government to carry out budget efficiency of IDR 306.69 trillion in the APBN and APBD for the 2025 fiscal year.

The directive is contained in Presidential Instruction Number 1 of 2025 concerning Expenditure Efficiency in the Implementation of the State Revenue and Expenditure Budget (APBN) as well as the Regional Revenue and Expenditure Budget (APBD).

Head of the DKI Jakarta Regional Financial Management Agency (BPKD) Michael Rolandi Cesnanta Brata admitted that the DKI Provincial Government is re-processing grants for government institutions that have the opportunity to be reduced.

"In accordance with Presidential Instruction Number 1 of 2025, it is requested for local governments to be more selective in providing direct grants, both in the form of goods, money and services to ministries/central government agencies," Michael told reporters, Tuesday, January 28.

In addition, the DKI Provincial Government has also opened an option to reduce grants to groups or community organizations (ormas) in Jakarta to increase the nominal budget saved.

"We will also try to see if later mass organizations or community groups need savings as well. But, our point is to follow up on the inpres mandated to local governments, namely to ministries/agencies," said Michael.

There are 5 budget posts that will be streamlined. In addition to reducing grants, the DKI Provincial Government will also reduce the allocation of ceremonial activity expenditures such as comparative studies, seminars, and printing printing.

Then, the reduction is also done in supporting spending and does not have measurable output.

"For example, such as hotel rental spending, car rentals, office operational spending, maintenance spending, and equipment procurement capital expenditure, it is also requested for OPDs to be identified for savings," said Michael.

Furthermore, spending on food and drink in guest banquet activities or working meetings of the DKI Provincial Government will also be reduced from the original budget of IDR 727 billion.

"Food and drink spending, if we average almost the same as official trips at 50 percent, maybe we can save more than Rp. 300 billion," explained Michael.

Then, the DKI Provincial Government also cut the allocation of official travel costs for all regional apparatus organizations (OPD). The plan is that official travel expenditures will be reduced by 50 percent to Rp175 billion.

"The purchase of official travel in 2025 is around Rp. 350 billion. So if you save 50 percent, the savings figure may reach Rp. 175 billion," he said.

Michael admitted that the DKI Provincial Government is still calculating the total budget that can be saved. The plan is that the determination of budget efficiency will be set this week.

"The DKI Provincial Government has processed the governor's verbal instructions regarding efficiency and adjustment of spending for the 2025 fiscal year as a follow-up to the issuance of Presidential Instruction Number 1 of 2025," he said.