Cak Imin Requests Additional Rp 1 Trillion Budget from Prabowo, For What Purpose?
Jakarta, CNBC Indonesia - Coordinating Minister for Human Development and Culture Muhaimin Iskandar explained the contents of a meeting with President Prabowo Subianto on Tuesday (12/5/2026). One of the key points was the plan to increase the budget for developing UMKM and the creative economy sector up to Rp 1 trillion.
Cak Imin stated that several encouraging aspects emerged from the meeting. First, the president has shown special attention to UMKM and the creative economy sector.
As a result, all programmes planned jointly with technical ministries will continue to be promoted and will keep facilitating UMKM to grow.
“And he has instructed the ranks of ministries and institutions to continue facilitating UMKM to grow and receive facilities, especially encouraging the use of idle BUMN and institutional spaces by UMKM for marketing, display, or festivals,” said Cak Imin.
Second, regarding the provision of special additional budget for UMKM activities up to the creative economy.
“This year, there will be a special additional budget for all UMKM and creative economy activities. I have proposed no less than Rp 1 trillion and, God willing, it will continue to be increased for activities that encourage the growth and development of our UMKM. In addition, we will continue to mobilise simplified credit, especially KUR for small and medium enterprises,” said Cak Imin.
On that occasion, Cak Imin also reported on the realisation of the budget for social protection or social assistance (bansos), which has reached Rp 508.2 trillion.
“The good thing is that it covers cash bansos as well as PKH and assistance for national health insurance contributions. In this context, energy subsidies are directed more accurately,” he said.
Furthermore, his side will continue to integrate all targeted bansos activities through the Ministry of Social Affairs. The distribution of bansos has been instructed to use the National Single Socio-Economic Data in channelling all government programmes.
This approach also aligns with the government’s plan to eradicate extreme poverty to 0% this year and reduce the poverty rate to 5% by 2029.
From his presentation, the current poverty rate has dropped to 8.25% this year from 9.57% the previous year.
“And today we continue to pursue it down to 7.36% in 2026. The extreme poverty target is 0.99% and this year a maximum of 0.38% or 0% extreme poverty by the end of the year. Meanwhile, alhamdulillah, in 2025 it is at 0.78%,” he explained.