The budget efficiency policy was rolled out by President Prabowo Subianto through Presidential Instruction Number 1 of 2025 concerning Spending Efficiency in the Implementation of the 2025 State Budget and Regional Budget.
"There are several sectors affected by this budget efficiency, including office travel," Muzani informed in a press statement at the Presidential Palace in Jakarta on Monday.
However, he did not provide details on budget efficiency measures at MPR.
He said that he had been informed by the House of Representatives' (DPR RI’s) budget committee about the budget efficiency. The details of the budget cuts are still being calculated, he informed.
"The socialization program is also affected. But the amount is still being calculated," he said.
Muzani then expressed support for the policy considering that several national priority programs require a larger budget allocation, which is possible through budget diversion from less productive programs.
"There are several programs that require budget concentration, so they must be taken from several other budgets whose productivity can be reviewed," he said.
In the Presidential Instruction signed on January 22, 2025, the President called for budget efficiency of Rp306.69 trillion (US$18 billion) in the 2025 State Budget and Regional Budget to maintain fiscal stability and support more optimal public services.
He also outlined restrictions on non-priority spending.
Governors, mayors, and district heads were asked to limit ceremonial spending, comparative studies, and official travel, with a reduction in official travel allowance of up to 50 percent.
In addition, the efficiency also targets honorarium spending and supporting activities without measurable output.
In his instructions, the President directed all ministries/institutions to focus on public service performance.
The budget must be focused on improving public services, not just equalizing between regional apparatuses or based on the previous year's budget pattern.
Related news: Home Ministry reflects on pandemic era for 2025 budget efficiency
Related news: Indonesian govt reduces overseas official trips: Minister
Related news: Prabowo urges officials to reduce overseas work trips for efficiency
Translator: Mentari Dwi/Genta Tenri, Resinta S
Editor: Azis Kurmala
Copyright © ANTARA 2025
