Prabowo Halts Uncoordinated Procurement to Enforce Fiscal Discipline

President Prabowo Subianto has stressed the importance of strict fiscal discipline, not only at the budget approval stage but also in the execution of every rupiah of the state budget (APBN). The Head of State has instructed a halt to the use of the budget for procuring similar goods separately by ministries, agencies, and regional governments. Prabowo highlighted the inefficiency caused by repeated procurement processes without coordination. According to him, procurement with the same specifications should be consolidated in large volumes to strengthen the state’s bargaining power. “We must stop the APBN being used to buy the same goods without coordination,” he asserted. Based on data from the National Public Procurement Agency (LKPP), the consolidation of procurement at the regional government level has shown positive results. Efficiency was recorded at 20.86% in 2025 and increased to 25.43% in 2026. The government plans to expand this mechanism nationally. The potential savings from this measure are considered very significant. With total procurement spending reaching approximately Rp1,200 trillion, the implementation of consolidation, electronic catalogues, and data-based planning is projected to yield efficiency gains of up to 30%. “The efficiency could reach around Rp360 trillion. This is not a small figure,” Prabowo stated. As a concrete step, the government will strengthen the LKPP institution into a Government Procurement Agency. This body will later coordinate the needs of various agencies, standardise goods specifications, and unify the volume of needs to be more efficient. In addition to consolidation, digitalisation is a main pillar in this transformation. Prabowo emphasised that the entire procurement process must be conducted digitally to ensure transparency, healthy competition, and accountability in the use of public funds. The President concluded by affirming that every rupiah saved must be redirected for the direct benefit of the people. The budget will be focused on building classrooms, community health centres, hospitals, and improving the general quality of life for the people.