Indonesian Political, Business & Finance News

Government Saves Up to Rp 130 Trillion from Cutting Official Trips and Ceremonial Activities

| | Source: REPUBLIKA Translated from Indonesian | Economy
Government Saves Up to Rp 130 Trillion from Cutting Official Trips and Ceremonial Activities
Image: REPUBLIKA

REPUBLIKA.CO.ID, JAKARTA – The government has decided on various new policies as efforts to mitigate and anticipate global dynamics resulting from the war in the Middle East. Among them, budget efficiency for Ministries/Institutions (K/L) is being carried out, estimated to save funds of Rp 130.2 trillion.

“The government is taking strategic steps in managing state finances through prioritisation and refocusing of spending by Ministries and Institutions. Budget reallocation is being done from spending that is less prioritised, such as official trips, meetings, non-operational spending, and ceremonial activities,” stated Coordinating Minister for the Economy Airlangga Hartarto during a press conference on Tuesday (31/3/2026).

The budget from such less prioritised spending will be redirected to more productive spending that directly impacts the public, including rehabilitation and reconstruction of disasters in Sumatra.

Airlangga stated that the government is also continuing to encourage acceleration of K/L spending as well as sharpening spending through budget optimisation. Based on calculations, the budget efficiency steps for official trips up to ceremonial activities are estimated to save hundreds of trillions of rupiah.

“The potential for prioritisation and refocusing of budgets for Ministries and Institutions is in the range of Rp 121.2 trillion to Rp 130.2 trillion,” he explained.

According to Airlangga, efficiency in domestic official trips reaches up to 50 percent, while overseas official trips reach 70 percent.

Other policies for civil servants (ASN), the government has set a transformation of more efficient digital-based work culture. The government is implementing work from home (WFH) for ASN in central and regional agencies for one working day per week, namely every Friday. That policy is further regulated through a circular from the Minister of PAN-RB and the Minister of Home Affairs.

In addition, a policy of mobility efficiency is being implemented, including limiting the use of official vehicles to 50 percent, except for operational and electric vehicles, as well as encouraging the use of public transport. This step is expected to reduce the use of official vehicles and optimise public transport.

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