Prabowo Changes Mind, All Ministries and Institutions Finally Affected by Budget Efficiency

JAKARTA, KOMPAS – After initially exempting several ministries and agencies from the obligation of budget efficiency, President Prabowo Subianto has changed his mind. Now, all ministries and agencies are subject to budget efficiency, including law enforcement agencies and state audit institutions that were previously spared from cuts.

The policy changed after the government conducted a reconstruction or re-evaluation of the budget efficiency policy previously ordered by Prabowo through Presidential Instruction (Inpres) Number 1 of 2025.

Throughout Wednesday (12/2/2025) to Thursday (13/2/2025), all ministries and agencies (K/L) held meetings with their respective working partners at the House of Representatives (DPR). This is because all K/L must submit the results of their budget efficiency plans, which have been approved by the DPR, to the Ministry of Finance by no later than February 14, 2025.

Chairman of the Budget Committee of the House of Representatives from the PDI-Perjuangan faction, Said Abdullah, stated that despite the reconstruction of budget efficiency, the total value of budget efficiency remains at Rp 306.7 trillion in accordance with Presidential Instruction 1/2025. However, this time, all ministries/agencies are subject to efficiency without exception. This is a change from the initial policy where 17 ministries/agencies were exempt from cuts.

Previously, the 17 ministries/agencies that were exempt from budget efficiency were law enforcement agencies, state audit institutions, judicial and legislative bodies, as well as agencies managing Prabowo's flagship programs such as the National Nutrition Agency (BGN).

"The amount of efficiency remains Rp306.7 trillion. All ministries/agencies are affected, there are no more exceptions. So that it is fair, right, if all ministries/agencies are affected. So that it is fair," said Said when met at the Parliament Complex, Senayan, Jakarta, Wednesday (12/2/2025).

According to him, the efficiency figure of Rp 306.7 trillion emerged from discussions between Prabowo and the Ministry of Finance. "That figure was obtained after scrutinizing expenditure items, capital expenditures, including transfers to regions (TKD). It should be (from) the Ministry of Finance, that the Ministry of Finance discussed it with the President because the Ministry of Finance's authority is directly under the President," said Said.

Based on the results of the meeting between the government and the DPR throughout Wednesday afternoon, several law enforcement agencies and audit institutions that were previously exempted from efficiency measures were finally asked to cut their budgets.

Among others, the Indonesian National Police (Polri) which eventually cut Rp 20 trillion, the Attorney General's Office Rp 5.4 trillion, and the Supreme Court Rp 2.2 trillion.

There is also the National Narcotics Agency (BNN) which cut Rp 998.6 billion, the Constitutional Court Rp 226 billion, the Corruption Eradication Commission (KPK) Rp 200 billion, and the Financial Transaction Reports and Analysis Center (PPATK) Rp 109.8 billion.

Not only that, audit institutions such as the Financial and Development Supervisory Agency (BPKP) were also finally hit by a cut of IDR 471.4 billion.

The amount of budget efficiency also decreased for various other ministries/agencies that had previously been cut. For example, the Ministry of Empowerment of Apparatus and Bureaucratic Reform dropped from Rp219 billion in efficiency to Rp184 billion; the State Civil Service Agency (BKN) dropped from Rp285 billion in efficiency to Rp195 billion.

The efficiency carried out by the Ministry of Cooperatives also dropped from Rp 288 billion to Rp 155 billion. Likewise, the National Archives of the Republic of Indonesia (ANRI) which was initially cut by Rp 200 billion finally dropped to Rp 93 billion.

Deputy Chairman of the DPR Budget Agency from the Gerindra Party Faction, Wihadi Wiyanto, said that President Prabowo asked for the budget efficiency policy to be reconstructed so that budget cuts in various ministries/agencies would not disrupt services to the public.

The reason is that the efficiency that was initially carried out by a number of ministries/agencies has actually disrupted a number of main functional tasks (tupoksi) and important government programs that have an impact on the public.

Therefore, after budget reconstruction, the cuts made in each K/L must follow the spending items that have been determined by the Ministry of Finance so that the efficiency results do not impact essential programs.

"Previously, at the beginning of the efficiency plan in K/L, it was not per budget program item. At first, the Minister of Finance's letter was still in the form of a log. Now it is. So, the Ministry of Finance provides per budget program item which must be cut in each K/L. The point is so that public services are not disrupted even though there is efficiency," said Wihadi.