{
    "success": true,
    "data": {
        "id": 1807645,
        "msgid": "umy-expert-fiscal-governance-reform-key-to-mitigating-efficiency-impacts-1781686489",
        "date": "2026-06-17 14:59:25",
        "title": "UMY Expert: Fiscal Governance Reform Key to Mitigating Efficiency Impacts",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "An economist from Universitas Muhammadiyah Yogyakarta argues that improving fiscal governance is crucial to cushioning the negative effects of the government's ongoing budget efficiency policy. He distinguishes between cutting productive spending and plugging budget leakages, warning that regions heavily reliant on central transfers, like Yogyakarta, face significant pressure. The expert remains optimistic about Indonesia's economic outlook, citing easing geopolitical tensions and a strengthening rupiah, provided strategic programmes are well managed.",
        "content": "<p>Yogyakarta (ANTARA) - Economics expert from Universitas Muhammadiyah\nYogyakarta (UMY) Prof.\u00a0Dr.\u00a0Imamudin Yuliadi has stressed the importance\nof improving fiscal governance as the primary instrument to mitigate the\nnegative impacts of the government\u2019s ongoing budget efficiency policy.\nSpeaking in Yogyakarta on Wednesday, Imamudin stated that the\nunderstanding of budget efficiency must clearly distinguish between\nreducing productive spending and efforts to curb budget leakages. \u201cIf\nefficiency is interpreted as reducing budget allocations to the regions,\nthen clearly the economic strength driven by the government will\ndiminish. However, if efficiency is understood as an effort to reduce\nbudget leakages, then it is a very positive step,\u201d he said in a press\nstatement. He highlighted the fiscal challenges facing the Yogyakarta\nSpecial Region (DIY) government in 2026, where budget tightening is\noccurring due to a reduction in central transfer funds of Rp167 billion\nand Special Autonomy Funds of Rp400 billion. According to him, regions\nwith strong private sectors, such as those on Java Island, have better\nresilience because they are supported by the services, education, and\ntourism sectors. Conversely, regions that are highly dependent on\ngovernment spending will face more significant pressure. Tourism is the\neconomic backbone in DIY, and amid economic pressures from budget\nefficiency and rising fuel prices, Imamudin believes the tourism sector\ncan serve as the region\u2019s main economic buffer. \u201cThis is because the\ntourism sector has a multiplier effect that can drive other sectors,\nsuch as transportation, culinary, accommodation, and even MSMEs,\u201d he\nsaid. However, he cautioned that MSMEs are currently under pressure from\ntwo directions: rising production costs due to the surge in fuel prices\nand weakening public purchasing power. \u201cThe government needs to pay\nspecial attention to sectors that are basic needs for MSMEs. The fiscal\nspace available from improved governance should be redirected to support\nthese productive sectors,\u201d he added. Despite facing various challenges,\nImamudin expressed optimism that the Indonesian economy will move in a\npositive direction within the next two to three months. This optimism is\nfuelled by easing global geopolitical tensions, which could lower world\noil prices, and the trend of a strengthening rupiah exchange rate. He\nasserted that the main key to recovery lies in improving government\ngovernance, especially in the implementation of strategic national\nprogrammes such as the Free Nutritious Meals programme and strengthening\nvillage cooperatives. \u201cIf the governance of natural resources and\nstrategic programmes is improved, the fiscal space will be much more\nrelaxed. The impact can be used to strengthen education, health, MSME\ndevelopment, and sustainable job creation,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/umy-expert-fiscal-governance-reform-key-to-mitigating-efficiency-impacts-1781686489",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}