To Maintain Healthy State Budget, Finance Minister Purbaya Limits New Budget Proposals from Ministries/Institutions

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa is limiting new budget proposals from ministries/institutions (K/L) to maintain the health of the State Revenue and Expenditure Budget (APBN) amid geopolitical turmoil in the Middle East.

“I will limit new budgets; don’t submit any more,” Purbaya told reporters at the Directorate General of Taxation office, Ministry of Finance, Jakarta, on Saturday.

This restriction is being implemented alongside policies for efficiency in K/L spending.

Initially, the percentage cut in each K/L’s budget was targeted at 10 percent. However, Purbaya admitted he is still reviewing the decision on the scale of the government spending cuts.

“We’re calculating it for all ministries. Initially, we proposed they submit (efficiency) of 10 percent. But when I offered it to them, they didn’t cut but kept adding. Alright, I said, I’ll make the cuts, and they can adjust later. The percentage is still under discussion,” the Finance Minister explained.

He added that the spending efficiency policy and restrictions on K/L budget submissions will be carried out while still considering economic needs, ensuring the national economy remains stable.

“We ensure that government spending which must be disbursed is done on time. Not the ones being cut, of course. We ensure liquidity in the economic system is well maintained. I monitor that daily at our place,” he stated.

The discussion on the percentage of budget cuts was previously conveyed by Purbaya at the Presidential Palace Complex, Jakarta, on Thursday afternoon (19/3).

Purbaya explained that the Ministry of Finance will review spending components deemed postponable for the time being. The efficiency focus targets programmes that do not provide significant impact or have slow acceleration towards national economic growth.

According to the Finance Minister, this policy covers various aspects of operational spending, including non-urgent internal activities.

“Various things. Unclear meetings, or policies with slow or minimal impact on economic growth, we can postpone,” he said.

In addition to efficiency at the programme level, discussions on cutting ministers’ and deputy ministers’ salaries have emerged as part of national budget savings. Purbaya expressed his support for the proposal as a concrete step of solidarity by state officials in saving expenditures.