ER
SPECIAL Presidential Envoy for Climate and Energy Hashim Djojohadikusumo revealed the reason why President Prabowo Subianto cut the central government budget and transfers to the regions (TKD).
According to Hashim, President Prabowo did this because much of the state budget was not spent on strategic programs, such as overseas travel programs. In fact, he said, many programs were “silly.
“There are stupid programs, they will be removed. Later I can tell Mr. CT [Chairul Tanjung]. There are many silly ones, it turns out,” Hashim said at the ESG Sustainability Forum 2025 event on Friday (01/31), 2025.
Hashim said Prabowo was already aware of the silly programs. This was discovered during a thorough investigation of APBN in recent weeks.
Therefore, Hashim said, the government was able to make savings in the end. The savings were allocated to the Free Nutritious Meal (MBG) program.
“For MBG, President Prabowo took it from the budget that was cut, cut by IDR306 trillion, and actually it was even bigger. Because this does not include dividends from State-Owned Enterprises (BUMN), if I’m not mistaken it’s IDR170 trillion,” he said.
Earlier, President Prabowo pushed for efficiency or savings in the 2025 state budget spending of up to IDR306.69 trillion. The number one person in Indonesia made this effort by cutting a number of spending in ministries/institutions to transfer funds to regional governments (pemda).
Based on Presidential Instruction (Inpres) No. 1 of 2025 on Spending Efficiency in the Implementation of the 2025 State Budget and Regional Budget, there are two main sources of the cuts. In the policy signed by President Prabowo on January 22, 2025, the head of state will cut the budget for ministries/institutions by IDR256.1 trillion.
Then Prabowo cut the allocation of transfer funds to the regions (TKD) by IDR50.59 trillion. The 8th President of the Republic of Indonesia also instructed ministers and heads of institutions in the Red and White Cabinet to immediately identify items that could be cut. However, budget efficiency does not include employee spending and social assistance (bansos).
“The identification of efficiency plans referred to in number 1 includes operational and non-operational expenditures. At least consisting of office operating expenses, maintenance expenses, official travel, government assistance, infrastructure development and procurement of equipment and machinery,” reads the third point of the second directive, quoted Thursday (01/23), 2025. [sources/photo special]
