MBG and Social Assistance Unaffected by Efficiency Measures

JAKARTA, KOMPAS.com - The Indonesian government will cut budgets for ministries and institutions, including limiting new budget proposals. This step is taken to maintain fiscal discipline amid global economic dynamics, particularly the rising world oil prices. However, the budget cut plan is still in the discussion stage, as the percentage for each ministry is being calculated. Finance Minister Purbaya Yudhi Sadewa emphasised that the government will reduce budgets for ministries and institutions. Purbaya assessed that many ministries have continuously submitted large additional budget requests, so the government needs to make adjustments to keep state expenditure under control. “Basically, we will cut budgets; I will limit new budgets, don’t submit them anymore. The ministers keep submitting, tens of trillions, we cut those, and adjust the others,” said Purbaya at the Directorate General of Taxation (DJP) Office of the Ministry of Finance, Jakarta, on Saturday (21/3/2026). Nevertheless, Purbaya assured that this budget efficiency policy will not disrupt economic growth. The government, he said, will continue to ensure that economic activities run well. “But this won’t affect the economy. We also ensure the economy is well maintained. I monitor that continuously,” he said. One scenario discussed is a cut of around 10 per cent from the budgets of ministries/institutions. However, according to Purbaya, the efficiency proposal is not yet final as it is still in the discussion stage. The government is still formulating the final percentage for the budget cut, considering the needs of each ministry. “We’re calculating for all ministries. Initially, we proposed they submit (efficiency) 10 per cent, but when I offered it to them, they didn’t cut but kept adding. So I said I’ll cut, then they adjust. But the percentage is still being discussed,” he said.