{
    "success": true,
    "data": {
        "id": 1675009,
        "msgid": "to-curb-state-budget-deficit-core-economist-budget-reallocation-for-priority-programmes-possible-1776088257",
        "date": "2026-04-13 20:07:00",
        "title": "To Curb State Budget Deficit, CORE Economist: Budget Reallocation for Priority Programmes Possible",
        "author": "Erlangga Djumena",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Economy",
        "summary": "Economist Yusuf Rendy Manilet from the Center of Reform on Economics (CORE) suggests that the Indonesian government could reallocate or delay funding for major priority programmes, such as the Free Nutritious Meals (MBG) and Village Direct Cash Assistance (KDMP), to manage the state budget deficit amid geopolitical pressures and potential energy price surges. He notes that these programmes have substantial allocations totalling around Rp400 trillion this year, providing fiscal space for additional energy subsidies if needed, although initial efficiency measures have been limited in scope. This approach is crucial to maintain fiscal control in the face of global uncertainties, including the recent failure of US-Iran peace talks that could escalate tensions.",
        "content": "<p>JAKARTA, KOMPAS.com - Economist from the Center of Reform on\nEconomics (CORE) Yusuf Rendy Manilet believes that delaying or\nreallocating the budget for government priority programmes could be one\noption to curb the state budget deficit, especially amid geopolitical\npressures and the potential for energy price spikes.<\/p>\n<p>According to him, the government\u2019s strategic programmes have large\nbudget allocations, which can be utilised as fiscal space when the\ngovernment requires additional spending, particularly for energy\nsubsidies.<\/p>\n<p>\u201cOf course, especially since strategic programmes have large\nallocations. As an illustration, the MBG and KDMP programmes have a\ntotal budget allocation this year of around Rp400 trillion, which is\nsubstantial enough to be bypassed in government mitigation policies,\nsuch as budget efficiency,\u201d Yusuf told Kompas.com on Monday\n(13\/4\/2026).<\/p>\n<p>\u201cFor example, if the government reallocates half of that total\nbudget, it could be used to increase subsidy funding that can be\nutilised if oil prices rise and the government needs additional budget,\u201d\nhe explained.<\/p>\n<p>Nevertheless, Yusuf notes that the government has actually begun\nimplementing efficiency measures on priority programmes, including the\nFree Nutritious Meals (MBG) programme, although the scale remains\nlimited.<\/p>\n<p>\u201cActually, looking at the government\u2019s initial mitigation, MBG has\nalready been included in one of the spending aspects that has been made\nmore efficient. However, it is still limited to reducing the number of\nmeal distribution days,\u201d he said.<\/p>\n<p>He assesses that this efficiency step is not yet significant enough,\nwhile on the other hand, priority programmes are still absorbing large\namounts of budget.<\/p>\n<p>\u201cIt\u2019s not substantial enough yet, and indeed, amid the efficiency\nprocess being carried out by the government, this programme appears to\nbe very massive in its spending,\u201d he stated.<\/p>\n<p>Yusuf emphasises that in conditions of increasing fiscal pressure due\nto geopolitical conflicts, the government needs to be more firm in\nincluding strategic programmes in the list of spending that can be\nevaluated or delayed.<\/p>\n<p>\u201cThis is because the government has increasingly thin budget space if\npressure through geopolitical conflicts intensifies,\u201d he said.<\/p>\n<p>He adds that such steps are important to keep the deficit under\ncontrol amid high global uncertainties.<\/p>\n<p>Previously, the failure of peace negotiations between the United\nStates and Iran in Pakistan on Saturday (11\/4\/2026) has posed a major\ndilemma for US President Donald Trump.<\/p>\n<p>According to a South China Morning Post report, Trump faces a\ndifficult choice: to continue military strikes or to hold back.<\/p>\n<p>If the US resumes escalating military action, that step could\npotentially face domestic opposition, especially ahead of the midterm\nelections.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/to-curb-state-budget-deficit-core-economist-budget-reallocation-for-priority-programmes-possible-1776088257",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}