President Prabowo Subianto has made State Budget (APBN) savings of Rp20 trillion (US$1.2 billion) by cutting travel expenses for ministers and officials in the Red and White Cabinet.
“I’m cutting business travel in half. We can save more than Rp20 trillion,” the president told a plenary cabinet meeting on Wednesday, January 22, 2025.
Minister of Finance Sri Mulyani has issued a Circular No. S-1023/MK.02/2024 as of Thursday, November 7, 2024. The letter instructs measures to reduce the budget for official travel expenses of Ministries/government agencies in the 2025 fiscal year.
The letter was addressed to the Cabinet ministers, the Attorney General, the National Police Chief, the Indonesian Military Chief, Heads of Non-Ministerial Institutions, and Heads of the Secretariats of State Institutions.
Prabowo said that the budget cuts for government departments could be allocated for the construction of several public infrastructures, such as dams, irrigations, development and repair of tens of thousands of schools, and even free nutritious meal program (MBG).
He also asked state officials to reduce ceremonial activities, such as celebrating the anniversary of an agency or institution.
Prabowo instructed the ministers and heads of agencies present at the plenary cabinet meeting to save the budget for anniversary activities.
“The birthday celebration will be held simply in the office or in a room. If necessary, only 15 people will attend, the rest virtually,” he said.
Earlier in December 2024, Prabowo had also ordered the Ministry of Finance to cut the budget for overseas travel of ministers and officials who are members of the Red and White Cabinet; the nominal value of the budget proposal reached US$3 billion (Rp47.8 trillion).
“I have ordered the Minister of Finance and Deputy Minister of Finance to examine all programs, it turns out that the savings are quite large,” Prabowo said on December 4, 2024.
