Prabowo's State Budget Strategy: Reallocation of Rp800 Trillion, Efficiency Savings Reach Rp80 Trillion

The government is undertaking various efforts to anticipate fiscal pressures resulting from the surge in global oil prices due to the war in the Middle East. One policy being implemented is efficiency, or savings. This was stated by President Prabowo Subianto during a discussion with several experts and journalists titled ‘President Prabowo Answers’ some time ago. At that time, Prabowo responded to a question from journalist Najwa Shihab regarding the fiscal pressure on fuel subsidies that could swell due to the skyrocketing global oil prices. Initially, Prabowo was asked about budget allocations that would be prioritised when fiscal space is limited. However, according to him, the government has already prepared various measures, from reducing fuel consumption to budget savings steps. The Gerindra Party Chairman emphasised that the government has sufficient funds. In fact, he stated that in the first year of his administration, it was able to achieve budget savings of up to Rp500 trillion. ‘I tend to think, our money is everywhere, but I don’t know if our elites understand or not. I’ve already told you, at the beginning of my administration I could save Rp300 trillion, at the end of the first year another Rp500 trillion,’ Prabowo replied. However, he believes that budget leakages must continue to be curbed so they can be allocated to productive matters. In this context, it is done to anticipate the swelling of energy subsidy budgets. The approach involves reducing consumption and promoting the use of new renewable energy. ‘Why would we sit idle, we will take all efforts, we want to lower consumption, we want to increase our biodiesel,’ Prabowo replied. In addition, he assured that the government has also implemented additional savings of up to Rp81 trillion. Outside the total budget reallocation that has been carried out since the beginning of his administration, reaching Rp800 trillion. This matter of efficiency and reallocation was reaffirmed by State Secretary Minister Prasetyo Hadi, who was also present on the same occasion. ‘We have already obtained Rp80 trillion. Outside what we have reallocated. Total approximately US$70 billion. What has been reallocated is approximately Rp800 trillion, outside of that, the President ordered further efficiency, we have already obtained around Rp81 trillion,’ Prasetyo explained. When asked if there would be shifts in budget allocations from priority programmes, according to Prabowo, the current situation of volatility is still being assessed. ‘Well, we’ll see, I have quite good ministers, we also take steps, not waiting for the crisis. We anticipate,’ Prabowo clarified. Free Nutritious Meals Budget Proposal Cut by Rp40 Trillion On the other hand, his cabinet has also formulated several savings proposals. Finance Minister Purbaya Yudhi Sadewa said that the number of days for distributing the Free Nutritious Meals (MBG) programme is proposed to be reduced, as a result of the efficiency policy being applied. This is a proposal from the National Nutrition Agency to the Finance Minister, to address the risk of economic pressure due to the Iran war and global oil price volatility. The MBG distribution will be reduced from 6 days to just 5 days. But according to Purbaya, this proposal has not yet become part of the total efficiency value set by President Prabowo at Rp81 trillion. ‘Saturdays are stopped, if I’m not mistaken. It’s usually 6 days a week, he said 5 days, I don’t know if it’s announced or not, but he said like that,’ Purbaya said, at his office, Wednesday (25/3/2026). Purbaya said that with the efficiency of one distribution day, the budget saved could reach around Rp40 trillion. This, he said, is based on calculations by the National Nutrition Agency. ‘But it could be more, and it’s not me cutting, indeed they are doing it themselves because they said there can still be efficiency in the current situation. So don’t say MBG is turning a blind eye, no, they are also doing efficiency,’ Purbaya emphasised. Purbaya affirmed that the efficiency of days in MBG distribution has not yet reached the official decision level, but is merely a proposal from the National Nutrition Agency during a coordination meeting at the Coordinating Ministry for the Economy. Therefore, before taking this step, according to Purbaya, the National Nutrition Agency will first report to the president for the final decision. Thus, he does not want to detail this plan because it will be directly conveyed by the National Nutrition Agency. ‘But the potential is there, if it’s tight, then it’s implemented, right, it can get Rp40 trillion on its own, he said, this is cut by one day for a year, right, the budget horizon is a year,’ Purbaya stated.