"Indonesia, despite facing this global turmoil, continues to focus on medium- and long-term goals to ensure how it can develop economically," he said at the Indonesia Credit Spotlight 2025 seminar here on Wednesday.
Considering the challenging global economic conditions that are prevailing currently, a country cannot only focus on short-term goals, he explained.
In the context of Indonesia, the government remains committed to continuing structural reforms to achieve sustainable development goals despite global economic difficulties, he said.
One of the strategic steps carried out by the government this year has been pursuing budget efficiency against irrelevant spending or expenditure.
"Presidential Instruction Number 1 of 2025 instructs us to achieve efficiency of Rp256 trillion (US$15.5 billion), which is around 23–24 percent of the ministry's budget," he explained.
Further, although the State Budget has recorded a deficit since the beginning of the year, with the figure pegged at Rp104.2 trillion (US$6.3 billion) as of March 2025, Nazara assured that budget management is in the range agreed by the government and the House of Representatives (DPR).
"The budget continues to run according to plan to support government priorities, with revenue mobilization and increasing the tax ratio as the main focus," he highlighted.
He also emphasized the importance of maintaining budget credibility and efficiency to support inclusive and productive economic growth.
"We are committed to maintaining budget credibility, maintaining the budget deficit below 3 percent, and ensuring that the budget efficiency that has begun in early 2025 can support government programs," he said.
The government has opened the reserved or blocked budget of 99 ministries/institutions worth Rp86.6 trillion (US$5.2 billion) and completed the implementation of budget efficiency based on Presidential Instruction No. 1 of 2025.
Finance Minister Sri Mulyani Indrawati reported to President Prabowo Subianto that the implementation of the instruction has been completed. The report was made on March 7, 2025.
Furthermore, she sought the President's permission to relocate and unblock the budget so that the spending of ministries/institutions can be made sharper, in keeping with government priorities.
In particular, Rp33.11 trillion (US$2 billion) has been unblocked and used for the restructuring of 23 new ministries/institutions in the Red and White Cabinet.
Meanwhile, another Rp53.49 trillion (US$3.2 billion) has been used to unblock the budgets of 76 ministries/institutions. The figure reflects the realization until April 25.
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Translator: Imamatul Silfia, Yashinta Difa
Editor: Azis Kurmala
Copyright © ANTARA 2025
