Prabowo Holds Rp 750 Trillion in Reserve Funds, Already “Payed in Installments” Since Last Year

JAKARTA, KOMPAS – The Prabowo Subianto government holds reserve funds in the 2025 State Budget of Rp 750 trillion obtained from various sources and accumulated since last year. The jumbo fund must be managed transparently so that it does not become a boomerang that triggers budget leaks, corrupt practices, and weakens the economy.

Information regarding the total budget savings of Rp 750 trillion was previously conveyed by President Prabowo Subianto during the anniversary event of the Gerindra Party in Sentul, Bogor, West Java, last Sunday (16/2/2025).

When delivering a speech as the party chairman, Prabowo outlined the total savings currently in his hands amounting to 44 billion US dollars or equivalent to Rp 750 trillion. He stated that this figure was obtained from the government's savings measures carried out in three rounds.

The emergence of the figure of Rp 750 trillion has caused confusion and misinformation. This is because the budget efficiency currently being implemented by the government according to Presidential Instruction (Inpres) Number 1 of 2025 should only be Rp 306.7 trillion, far from the Rp 750 trillion mentioned by Prabowo.

After attending a meeting with Committee IV of the Regional Representative Council (DPR) at the Parliament Complex, Senayan, Jakarta, Deputy Minister of Finance Suahasil Nazara clarified the issue of the three rounds of savings. He explained that the budget efficiency carried out by the government was actually only Rp306.7 trillion, not Rp750 trillion.

The Rp 306.7 trillion fund is the result of the second round of savings based on Presidential Instruction 1/2025 delivered by Prabowo at the Gerindra anniversary. The difference is, in his speech, Prabowo mentioned that the budget efficiency carried out by the government was larger, amounting to Rp 308 trillion.

”No (Rp 750 trillion). The efficiency as written in Presidential Instruction 1/2025 is Rp 256 trillion from the budget of ministries and institutions (K/L) and Rp 50 trillion from transfers to regions (TKD). Later we will combine it (to Rp 306 trillion),” said Suahasil.

Meanwhile, the first round of savings mentioned by Prabowo amounting to Rp 300 trillion comes from the State General Treasurer's Budget Section (BA BUN). BA BUN is a budget post managed by the Minister of Finance and is not under the budget of any specific ministry or institution.

The third round is not actually a cost-saving measure, but rather an additional revenue target aimed at contributions from state-owned enterprises (BUMN) amounting to IDR 300 trillion.

Suahasil explained that the first round was actually a reserve fund that the government had prepared since previous years. "We have been conducting a sweep for several years, and this year we are conducting a sweep as well," he said.

Kompas notes that Prabowo had indeed entrusted reserve funds to the Joko Widodo government when drafting the 2025 State Budget in August-September 2024. At that time, Prabowo had not yet officially taken office even though he had been named president-elect in the 2024 election.

The reserve fund is set aside in the 2025 State Budget as a discretionary fund that can be adjusted to the needs of the Prabowo government. The value is IDR 491.2 trillion which is included in other spending items under the BA 999.08 budget unit under BA BUN.

The Rp491.2 trillion fund was initially set aside as a reserve fund, one of which was to finance the increase in the number of K/L in the Prabowo era and other unexpected needs. The reserve fund is currently still around Rp300 trillion left in the BA BUN wallet and is intended as a first-round savings measure.

Suahasil said that the budget efficiency that the government is currently implementing is basically aimed at making the APBN condition more efficient. "So that the funds can be used for activities that increase productivity and grow the local economy, micro, small, medium enterprises, and others," he said.

Separately, Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan assessed that the budget efficiency implemented by the government is indeed an important step to improve the quality of state spending. However, he reminded, the policy must be addressed with caution.

”I think this budget efficiency is a very important step. However, this step must still be done carefully. We must be careful how we allocate and obtain the Rp 300 trillion,” said Luhut at the 2025 Indonesia Economic Summit in Jakarta, Tuesday (2/18/2025).

According to Luhut, DEN agrees with the budget efficiency measures taken by the government as long as the impact of the policy can be measured in creating a multiplier effect on the national economy. DEN has also provided advice to the president holistically and proportionally.

Various groups have criticized the way the government implements the budget efficiency policy. Director of Public Policy at the Center of Economics and Law Studies Media Wahyudi Askar assessed that the government is not transparent enough in implementing the budget efficiency policy, especially regarding the allocation of the savings.

In his speech at Gerindra's anniversary, Prabowo stated that the Rp 750 trillion fund he holds will be allocated 20 billion US dollars (equivalent to Rp 325 trillion) to be invested in the Danantara Investment Management Agency (BPI). He will also allocate some more for the Free Nutritious Meals (MBG) program, although the amount is still unclear.

This is slightly different from the government's promise that the results of budget efficiency will be allocated to programs directly related to public welfare. The media also criticized the fiscal justice and spending quality aspects of the efficiency policy.

”The total of Rp 750 trillion will be taken from the APBN and shifted to other programs. This is not yet clear and there is no transparency. How many trillions will be diverted to MBG, plus there will be hundreds of trillions injected into Danantara,” Media said.

Meanwhile, Executive Director of the Center of Reform on Economics Indonesia Mohammad Faisal highlighted the large amount of funds that the government will inject into Danantara. Moreover, considering the governance of the new institution which has minimal checks and balances. Danantara, for example, can only be audited by the state audit institution if there is a request and permission from the DPR.

”The problem is how Danantara’s governance is. If it is not observed properly, not careful, there could be leaks, a nest of corruption, and the economic benefits that are expected to return to the community are actually reduced because they are enjoyed by a handful of people,” he said.