Purbaya Reveals BGN Budget Could Be Cut to Below Rp200 Trillion

Jakarta, CNBC Indonesia – Finance Minister Purbaya Yudhi Sadewa has revealed that the budget of the National Nutrition Agency (BGN) could be pressed down to below Rp200 trillion this year.

Purbaya said the savings are the result of the BGN’s efficiency efforts, although he does not yet know the exact figure for the agency’s budget after the cuts.

“(The budget cut) is for this year,” Purbaya said when asked whether the reduction of the BGN budget to below Rp200 trillion applies to the current year.

When asked again whether this year’s BGN budget could indeed be pressed below Rp200 trillion, Purbaya replied: “Yes, more or less.”

Nevertheless, Purbaya could not yet state the size of the BGN budget after the efficiency measures. According to him, the new Head of the BGN has a number of breakthroughs to push the budget down further.

“I don’t know yet, you should ask the new Head of the BGN. The new Head of the BGN is extremely creative,” Purbaya said.

“He said he can save more, but I don’t know the exact figure. You’ll have to ask him,” he continued.

Could Be Below Rp240 Trillion Next Year

Purbaya previously also stated there is a possibility that the BGN budget next year will be below Rp240 trillion. One way of achieving this efficiency is through the use of technology.

However, Purbaya admitted he does not yet know in detail what kind of technology the BGN will deploy to reduce programme costs.

“Not yet sure, we’ll see how the BGN implements it. He said he can be more efficient, but I don’t yet know the final figure,” Purbaya said.

As such, the final size of the BGN budget, both for this year and next year, still awaits further calculations from the agency and the progress of the efficiency measures it is undertaking.