The Center of Economic and Law Studies (Celios) has projected that Indonesia’s state budget could increase by Rp1.95 trillion (US$126 million) over the next five years due to President-elect Prabowo Subianto’s plan to expand his cabinet with hundreds of ministerial, deputy ministerial, and agency head positions.
This figure does not yet account for additional costs related to new office facilities or buildings, raising concerns over fiscal inefficiency.
Achmad Hanif Imaduddin, a researcher at Celios, highlighted that while the salaries of ministers may seem small compared to other positions, the broader economic impact could be substantial.
“Ministerial positions can lead to significant economic gains, such as increased stock values for companies owned by ministers, benefiting from their access to power,” he told a press conference in Jakarta on Thursday, October 17, 2024.
Hanif warned that this could create new economic inequalities, particularly for business-owning officials who could profit from their governmental roles. He also questioned the necessity of a larger cabinet, drawing comparisons with other nations.
The United States, with a population of around 346 million, has only 15 executive departments, while China, the world’s most populous nation, operates with 21 ministries.
In contrast, Indonesia, with a population of 275 million, currently has 46 ministries − significantly more than these nations.
“This shows that increasing the number of ministers does not necessarily lead to greater efficiency or effectiveness. Instead, it risks inflating the bureaucracy and escalating state budget waste,” Hanif said.
Celios also pointed out that the majority of individuals called by Prabowo to join his cabinet are politicians, making up 55.6 percent of the 108 candidates.
Only 15.7 percent are professional technocrats, with smaller representations from the military, entrepreneurs, religious figures, and celebrities. Sadly, only 5.6 percent of candidates are from academia.
Celios calculated that during President Joko Widodo’s term, with 34 ministers and 17 deputy ministers, the government spent Rp387.6 billion annually on salaries and operational costs.
Under Prabowo’s expanded cabinet − assuming 49 ministers and 59 deputy ministers − this cost is projected to increase to Rp777 billion per year, an additional Rp389.4 billion annually.
Over five years, this increase would amount to approximately Rp1.95 trillion, according to Celios’ calculations.
Despite these concerns, Prabowo has defended the size of his cabinet, stating that Indonesia, as a large and complex country, requires a greater number of ministers.
“Our country is vast, comparable to the European continent. We need many ministers to effectively manage it,” Prabowo told the BNI Investor Summit 2024 in Jakarta on October 9, 2024.
