Government officials, legislators and public give mixed responses toward the policy of President Prabowo Subianto-Vice President Gibran Rakabuming Raka that has imposed tight policy on operational budgets of ministries and state institutions
The policy is meant to increase the efficiency of government spending and ensure more targeted fund allocation.
Minister of Home Affairs, Tito Karnavian, said that the home ministry welcomes the policy, but stresses the necessity to carry out the program with great care so as not to disrupt its priority programs.
“We ensure that budget efficiency will not hinder important priority programs, especially those directly related to public services,” Tito said on Friday, January 31, 2025.
He cited that his ministry had managed to cut its spending by 57.46 percent from the original Rp4.79 trillion (US$291,754,000) to Rp2.03 trillion. This budget cut covers various items, such as office stationery, ceremonial activities, meetings, seminars, and official travel.
Economy and Finance Commission II of the House of Representatives (DPR), through Chairman Rifqinizamy Karsayuda, supported the budget efficiency taken by the government. According to him, this policy is a response to the challenging global economic conditions and the potential crisis that Indonesia may face.
However, Rifqinizamy reminded that this efficiency should not hamper strategic programs that are vital for the community.
“We understand that the policy taken by the government is for the sake of efficiency, but the government must ensure that programs of the people’s interests mustcontinue to run optimally,” he said.
Economist at the University of Indonesia’s Institute for Economic and Social Research (LPEM UI), Teuku Riefky, cited that this policy has not yet touched the rootsof Indonesia’s economic problems.
Focus
Riefky suggested that the government should focus more on increasing productivity and creating high value-added jobs.
“If the government wants to encourage more inclusive economic growth, policies that support the purchasing power of the middle and lower classes need to be prioritized,” said Riefky.
Previously, Deputy House Speaker Sufmi Dasco Ahmad revealed the findings of fantastic figures in the budget spending for the procurement of office stationery (ATK) in various ministries and state institutions of some Rp45trillion.
“What are the small things that Mr. Prabowo will do in carrying out efficiency in spending in ministries and institutions, which I attended yesterday, there was the purchase of office stationery for all ministries and institutions, the amount was Rp44.4 trillion, only spending on stationery. Things like this [Rp44.4 trillion spent only for stationery] are small things that President Prabowo is trying to do in the name of efficiency in ministries and institutions,” Dasco said on January 7, 2025.
Implications
Dasco was assured that Prabowo would be tough in ensuring the policy is imposed, including on large government projects although it would make some parties unhappy.
“There are parties who will be unhappy if later, for example, President Prabowo is a bit tough in imposing the policy by involving law enforcement officers from the Corruption Eradication Commission (KPK) and the Attorney General’s Office to oversee large projects,” he cited.
