Budget efficiency was carried out in response to the issuance of Presidential Instruction Number 1 of 2025 on Spending Efficiency in the Implementation of the State Budget and Regional Budget for the 2025 Fiscal Year.
"We also learned from the previous COVID-19 incident where we saw a drastic change during that time," Home Affairs Minister Tito Karnavian remarked during a working meeting with Commission II of the Indonesian House of Representatives (DPR RI) on Monday.
He noted that during the pandemic, the ministry had adapted by transitioning several physical meetings to virtual formats and limiting the number of on-site employees to 25 percent, all while ensuring that the ministry's activities remained on track.
In carrying out budget efficiency this year, Karnavian affirmed that the ministry would continue to prioritize the main programs.
"However, this budget efficiency will not hamper our main programs," he remarked.
He detailed that the ministry's budget ceiling has been reduced by over 50 percent, from Rp4.7 trillion (US$279 million) to Rp2 trillion (US$118 trillion).
"From the total budget ceiling that was originally submitted at Rp4.7 trillion, the efficiency is around 57.46 percent, reaching Rp2 trillion," Karnavian stated.
The minister stated that the efficiency measures encompassed 16 categories, comprising around a 90 percent reduction in office stationery; a 56.9 percent cut in ceremonial activities; a 45 percent decrease in meetings and seminars, a 51.5 percent reduction in studies and analysis; a 29 percent cut in training and technical guidance; a 40 percent reduction in honorarium for output activities and professional services; a 75.9 percent decrease in printing and souvenirs; and a 73.3 percent cut in building, vehicle, equipment rentals.
This was followed by efficiency reductions of 21.6 percent for application licenses; 45.7 percent for consulting services; 16.7 percent for government assistance; 10.2 percent for maintenance and repair; 53.9 percent for business travel; 28 percent for equipment and machinery; 34.3 percent for infrastructure; and 59.1 percent for other expenses.
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Translator: Melalusa Susthira, Resinta Sulistiyandari
Editor: Azis Kurmala
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