State Palace: Strong economic fundamentals mean budget cuts not yet needed
Jakarta (ANTARA) - Minister of State Secretary Prasetyo Hadi has affirmed that Indonesia’s economic fundamentals and fiscal condition remain strong, so cuts to the defence and police budgets are not yet necessary.
Speaking at the Presidential Palace complex in Jakarta on Tuesday, Prasetyo said budget cuts for defence or the police would only be pursued if the fiscal condition came under pressure or a particular situation demanded it.
“Yes, possibly. That possibility means that if it is genuinely needed in a given situation, perhaps it will be done. Based on our evaluation up to today, thank God, our economic fundamentals are quite strong,” he said.
Prasetyo said the government’s fiscal condition, including the deficit position of the State Budget (APBN), remains well maintained, so the government does not yet see a need to take such a step.
Nevertheless, he said the government continues to carry out President Prabowo Subianto’s instruction to keep pursuing efficiency in spending deemed less productive, so that state expenditure becomes more effective and delivers greater benefits.
Previously, Minister of Finance Purbaya Yudhi Sadewa said the government would consider cutting the defence and police budgets if the fiscal condition and the APBN deficit target came under pressure. However, no discussion of reallocating those budgets has taken place so far.
The statement aligns with President Prabowo Subianto’s remarks that the government will continue to pursue budget efficiency and, if necessary, is ready to reduce the defence and police budgets to support efforts to tackle poverty and hunger.
According to Prasetyo, the government’s current focus is maintaining fiscal health while ensuring every item of state spending is used effectively to support the implementation of priority government programmes.
Data compiled by ANTARA shows the total allocation for the defence function/sector in the 2026 APBN is set at Rp337.37 trillion, while the Indonesian National Police (Polri) is allocated between Rp145.6 trillion and Rp146.05 trillion.