President Prabowo Subianto has stated that the government has managed\nto save up to Rp308 trillion in the budget after implementing efficiency\npolicies by cutting unproductive spending items.<\/p>\n
In a discussion session with several journalists and economists at\nPresident Prabowo\u2019s private residence in Hambalang, Bogor Regency, West\nJava, this week, President Prabowo explained that the massive efficiency\nof the state revenue and expenditure budget (APBN) aims to save the\npeople\u2019s money from potential criminal acts of corruption.<\/p>\n
\u201cWhen we first carried out efficiency, we saved Rp308 trillion from\nthe central government. Where did that come from? From all the\nunreasonable expenditures. My conviction is that all this Rp308\ntrillion, if not cut, would lead to corruption,\u201d said President Prabowo\nwhen discussing efficiency issues in an event titled \u201cPresident Prabowo\nAnswers\u201d, as quoted from the official broadcast of the Indonesian\nGovernment Communication Agency confirmed in Jakarta, Thursday\n(19\/3).<\/p>\n
The President explained the need for efficiency by looking at\nIndonesia\u2019s ICOR score, which tends to be higher than that of\nneighbouring countries.<\/p>\n
ICOR or Incremental Capital Output Ratio is an indicator that shows\nthe level of efficiency in using a country\u2019s budget. The lower the ICOR\nscore, the more efficient the country is in using its budget.<\/p>\n
Indonesia, said President Prabowo, has a score of 6.5, while\nneighbouring countries such as Thailand and Malaysia each have 4, and\nVietnam 3.6.<\/p>\n
Reflecting on the APBN approaching Rp3,700 trillion (about US$230\nbillion), President Prabowo estimated that budget inefficiency reaches\napproximately 30% or about US$75 billion.<\/p>\n
\u201cSo, this figure means 30%, much less efficient than Thailand,\nMalaysia, the Philippines, or Vietnam. If I use this as a basis, it\napproaches our GDP of Rp3,700 trillion or US$230 billion. Around 30% of\nthat is US$75 billion. This is inefficient,\u201d he said.<\/p>\n
On the same occasion, the President then outlined the unproductive\nspending items that have been cut, including the purchase of office\nstationery, expenditures for meetings and seminars outside the office,\nand the habit of procuring goods such as computers and office equipment\nalmost every year.<\/p>\n
Not only that, the President also found studies that do not address\nmain issues, such as poverty and employment.<\/p>\n
Therefore, the President emphasised that the efficiency policy will\ncontinue to be maintained given the threat of crisis that many\ncountries, including Indonesia, will face.<\/p>\n
Several countries, the President stated, have anticipated the\npotential crisis by issuing policies to reduce working days and\nimplement a work-from-home (WFH) system.<\/p>\n
\u201cI see other countries, for example, working days from five to four\ndays, the Philippines, Pakistan. Then work from home. During COVID, we\ndid it quite successfully. I think we can do that too. Maybe 75% of\nemployees or staff can work from home,\u201d said the President.\n(Ant\/P-3)<\/p>\n
He emphasised that the government will continue to prioritise more\nproductive and targeted spending.<\/p>\n
He stressed that the public needs concrete examples from leaders\nregarding efforts to efficiency the state budget.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/rp-300-trillion-successfully-saved-prabowo-thanks-to-cuts-in-unproductive-spending-1773942643", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }