Regions ready to implement Presidential Instruction on budget efficiency
Published on 17/02/2025 GMT+7 Reading time 3 minutes
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APBN
Regional administrations have expressed their readiness to implement Presidential Instruction (Inpres) No. 1/2025 on spending efficiency of the State Budget (APBN) and the Regional Budget (APBD) for the 2025 Fiscal Year, which was approved by President Prabowo Subianto following a Plenary Cabinet Session on January 22, 2025.
Secretary of Jambi Provincial Administration, Sudirman, said that budget efficiency implementation refers to Presidential Instruction No. 1/2025 and Home Affairs Minister Regulation No. 14/2025.
He cited that one of the measures taken is reducing the budget for official travel by 50 percent, the mechanism of which is integrated into the Ministry of Home Affairs' Regional Government Information System (SIPD).
"Hopefully this system change can be adapted well soon. It is important for us to maintain productivity and work efficiency. Support and cooperation from all parties are needed so that public services will remain optimal," Sudirman told a press conference at the Jambi Provincial Administration Office on Monday, February 17, 2025.
He added that efficiency is also imposed on spending for the infrastructure sector, office stationery, maintenance, printing, as well as goods and services.
Most importantly, the Jambi Provincial Administration has also stopped recruiting contract-based employees starting October 31, 2023. Recruitment of contract workers after that date is not permitted and will result in delayed payments.
“Instead, payment priority will be focused on Government Employees with Work Agreements (P3K) who have worked for at least two years and are registered in the government database,” Sudirman said.
Meanwhile, Jambi Governor Al Haris asked State civil servants (ASN) to continue to innovate in order to increase their working effectiveness and efficiency.
"I ask State civil servant to continue to improve their competence and skills in order to produce fruitful innovations," Haris said in a statement, read by Sudirman.
“ASN are expected to be able to adapt to these changes and maintain their performance in providing the best service to the community,” he added.
Circular
Meanwhile, the West Java Provincial Administration will immediately issue a circular to regions within the West Java province as a guideline for budget efficiency in accordance with the Presidential Instruction.
West Java Regional Secretary Herman Suryatman revealed that the 2025 Budget had been set at the end of 2024 and had been elaborated into a Governor's Regulation.
In reference to the three new regulations, the West Java Provincial Administration, Herman said, must make adjustments, efficiencies and relocation plans that are aligned with the vision and mission of the regional head elected in the 2024 Gubernatorial Election.
"During this transition period, we are communicating with the honorable (Provincial Legislative Council or DPRD) members, we are making preparations, while we observe the situation and condition because in the provisions that were previously conveyed, we must synchronize with the vision and mission of the regional head," he cited.
Similarly, the Penajam Paser Utara Regency Administration, East Kalimantan Province, is imposing budget efficiency in line with the Presidential Instruction No. 1/2025.
"The budget efficiency implementatiion is in accordance with the Inpres," Head of the Regional Finance and Asset Agency (BKAD) of Penajam Paser Utara Regency, Muhajir, said on Friday, February 14, 2025.
Previously, President Prabowo Subianto instructed ministries, institutions, and regional governments to streamline the state budget by up to Rp306.69 trillion (US$18.8 billion). The president also asked for restrictions on ceremonial spending, travel expenses, studies, comparative studies, printing, publications and seminars.
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