Government prepares budget efficiency measures as global uncertainties persist

Jakarta — The Cabinet Secretariat announced that the government is finalising efficiency measures and state budget optimisation through a cross-ministerial coordination meeting at the Ministry of Coordinating Affairs for Economic Development on Monday.

“Today, Cabinet Secretary Teddy Indra Wijaya attended the Coordination Meeting on Budget Efficiency and Optimisation held at the Ministry of Coordinating Affairs for Economic Development,” read a statement from the Cabinet Secretariat in Jakarta.

During the meeting, officials discussed various policy planning measures to be implemented by the government, including plans to readjust budget allocations across ministry and institutional spending.

The Cabinet Secretariat reported that this step forms part of the government’s efforts to maintain effective budget utilisation whilst ensuring priority programmes continue to operate.

The government is also closely monitoring developments in the dynamic global situation. Such monitoring serves as a foundation before the government makes further fiscal policy decisions.

Attended by Cabinet Secretary Teddy Indra Wijaya, the meeting chaired by Coordinating Minister for Economic Affairs Airlangga Hartarto also included former Finance Minister Sri Mulyani Indrawati, Head of the National Nutrition Agency Dadan Hindayana, Investment Minister and Head of the Investment Management Agency Danantara Rosan Roeslani, and Minister of National Development Planning/Bappenas Rachmat Pambudy.

Airlangga Hartarto stated that the meeting followed direction from President Prabowo Subianto to maintain the deficit at 3 per cent.

“During this meeting, we also prepared steps for budget optimisation and efficiency,” he said.

The government emphasised that it would not relax the fiscal deficit limit of the 2026 State Budget and Revenue Expenditure Law (APBN).

“The government chooses to focus on budget optimisation through efficiency in ministry and institutional spending,” he said.

According to Airlangga, this step was taken in response to various global uncertainties, including potential impacts of geopolitical conflicts on the economy.

Additionally, the government is preparing various fiscal scenarios to anticipate the possibility of global conflicts lasting longer than expected.