Minister of State-Owned Enterprises (SOEs) Erick Thohir has announced plans to reduce the number of commissioners at the Association of State-Owned Banks (Himbara) as part of a broader effort to streamline spending and improve budget efficiency.
Speaking to the media at the Ministry of SOEs on Monday, May 5, 2025, Erick said he would meet later that evening with Rosan P. Roeslani, CEO of the newly established state investment management body, Daya Anagata Nusantara (BPI Danantara), to discuss operational adjustments now that several SOEs have formally joined Danantara’s structure.
"We're implementing the kind of efficiency that President Prabowo Subianto has called for, such as reducing the number of commissioners in Himbara," Erick said on Monday, May 5, 2025.
He emphasized that discussions would also cover other areas of spending, such as business travel and overall governance efficiency, all of which would align with the president’s instructions.
Erick clarified that the push for efficiency should not be interpreted as a sign of economic downturn, but rather as a strategic reallocation of government resources.
“We are simply redirecting our budget to better support growth, including through innovations and efficiency in SOEs,” he said.
The initiative comes at a time when Indonesia's economy showed signs of strain. The Statistics Indonesia (BPS) reported a 0.98 percent contraction in GDP in the first quarter of 2025 compared to the previous quarter, with a significant dip in government spending.
“Government consumption fell by 1.38 percent,” BPS Chief Amalia Adininggar Widyasanti told a press conference in Jakarta, also on Monday.
She noted that this contraction was deeper than in the same period in 2024, which saw elevated government spending due to the general elections.
“There was an election last year. This year, there isn’t one, which is one reason for the decline in government spending,” Amalia cited.
Although President Prabowo has instructed ministries and agencies to improve budget efficiency, BPS has yet to detect a clear impact from these efforts in the first quarter.
“There’s been a realignment of funds, but its effects may only start to show in the second quarter of 2025 and beyond,” Amalia said.
She attributed the lag to ongoing administrative processes related to the reallocation, especially for government activities and broader economic programs.
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