Shadow Cabinet Minister: Public Taxes Used Recklessly

The Shadow Cabinet has highlighted various economic issues and budget policies under the Prabowo Subianto administration. Shadow Minister for Finance and Budget Governance, Bhima Yudhistira, stated that the state budget is often used carelessly. He noted that the budget is derived from public taxes, yet there is no accountability in its management under the current government. “Starting from populist programmes without proper studies and pilot projects, such as the free nutritious meals and the Red and White village cooperatives,” Bhima said when contacted on Saturday, 18 July 2026. He argued that Finance Minister Purbaya Yudhi Sadewa should verify the feasibility of every government programme, as their implementation uses public tax money and state debt. “If it is not feasible, don’t be a ‘yes man’ minister,” said the Executive Director of the Center of Economic and Law Studies. Bhima stressed that a finance minister should be brave enough to freeze budget items if a programme is not viable, including not using the excess budget balance for Himbara banks when there are still many fiscal issues to address. “As finance minister, one should know the correct rules of the game,” he said. Economic problems under Prabowo’s leadership are also seen as cannibalistic or substitutive towards the people’s economy. Bhima cited the free nutritious meal project, which he claims has replaced the role of school canteens and local MSMEs. Another example is the Red and White village cooperative programme, which he said acts more like a retail shop, competing with small kiosks and subsidised goods agents. “The economic pie is not growing; instead, there is state capture by elites, making policies that contradict Article 33 of the 1945 Constitution,” Bhima stated. Another issue is the government’s lack of creativity in managing public taxes, which risks causing an economic contraction for the lower classes. “There are no significant changes in tax policy; there is no courage to pursue big taxpayers through progressive taxes like windfall profit tax and wealth tax,” he said. On the other hand, he argued that the state seems to be punishing small businesses and the lower class through income tax adjustments. Bhima highlighted that last year’s tax buoyancy was -0.12, meaning that for every one percent of economic growth, tax revenue declined by 0.12 percent. “If Purbaya’s method of tax collection continues, the middle class and small entrepreneurs will suffer, while the tax ratio remains low or even falls,” he said. He also highlighted several economic policies that need correction. First, stopping budget waste by freezing the budget for the free nutritious meal project. He argued that the campaign promise programme is not achieving its goal of reducing stunting, and if the aim is to improve child nutrition, the budget allocation should be gradual. “It only needs Rp 10 trillion per year, not Rp 268 trillion,” he said. He added that the government should restore regional budget efficiency, as current cuts are triggering extreme local tax collection from the public. The government also needs to reform public transport and energy subsidies, ensuring the public receives these basic rights with quality. Further improvements must address the high-speed train issues, with Bhima insisting the government should not use state finances to solve the problem, as it adds to the burden on taxpayers. He also called for the cancellation of counter-productive regulations, the implementation of progressive taxes, closing tax leakages, ensuring the public receives tax benefits from their compliance, and not interfering in monetary affairs.