Government’s Budget Efficiencies Exceed President Prabowo Subianto’s Estimates
JAKARTA, investortrust.id – The Indonesian government secures major spending reductions that strengthen public programs and spur broader investments, offering fresh momentum to social initiatives and potential economic growth.
According to Presidential Instruction No. 1/2025, the administration initially aimed for Rp 256.1 trillion in budget cuts for ministries and agencies. Data released on the House of Representatives’ social media pages revealed that the actual figure reached Rp 280.2 trillion.
President Prabowo Subianto previously estimated that overall savings under the instruction could amount to Rp 308 trillion, which included efficiency gains of Rp 50.59 trillion from the Transfer to Regions fund. Of the total, Rp 58 trillion was restored to 17 ministries and agencies.
Several ministries recorded savings exceeding Rp 10 trillion:
- Ministry of Agriculture with Rp 10.28 trillion.
- Ministry of Public Works with Rp 81.38 trillion.
- Ministry of Transportation with Rp 17.87 trillion.
- Ministry of Religious Affairs with Rp 12.32 trillion.
- Ministry of Health with Rp 19.6 trillion.
- Ministry of Education, Science, and Technology, with Rp 14.2 trillion.
President Prabowo Subianto planned to allocate these funds, along with dividends from state-owned enterprises, to finance flagship government projects. He also stated that part of the budget savings would serve as investment capital for the Badan Pengelola Investasi Daya Anagata Nusantara (BPI Danantara).
In his calculation, the government could accumulate Rp 750 trillion, equivalent to around US$ 44 billion. Out of that sum, US$ 24 billion, or roughly Rp 390.24 trillion, was allocated for free nutritious meals to ensure public well-being. He emphasized that children across various economic backgrounds need consistent access to proper food, highlighting the importance of preventing hunger nationwide.
The National Nutrition Agency, known as BGN, had previously received Rp 71 trillion for the free nutritious meal program, with an additional Rp 100 trillion designated to expand its reach.
President Prabowo said that the remaining US$ 20 billion, equivalent to approximately Rp 325.2 trillion, would be directed to investments under BPI Danantara. “We will not use the remaining billions of dollars. We will entrust it to Danantara for further investment,” he explained.