The Indonesian government has cut the budget for ministries/institutions (K/L) in the 2025 State Revenue and Expenditure Budget (APBN).
This is stipulated in the Minister of Finance's Letter Number S-37/MK.02/2025, released on Tuesday (28/1/2025), which is a follow-up to Presidential Instruction (Inpres) Number 1 of 2025.
Based on the Inpres, President Prabowo Subianto targets efficiency in the K/L budget of Rp256.1 trillion. To realize this, Minister of Finance Sri Mulyani has implemented budget cuts in 16 K/L expenditure items.
The following is a breakdown of the K/L expenditure items that have been cut in the 2025 APBN:
1. Office supplies (ATK): budget cut by 90%
2. Printing and souvenirs: 75.9%
3. Building, vehicle, and equipment rental: 73.3%
4. Ceremonial activities: 56.9%
5. Business trips: 53.9%
6. Studies and analysis: 51.5%
7. Consultant services: 45.7%
8. Meetings, seminars, and the like: 45%
9. Output honorariums and professional services: 40%
10. Infrastructure: 34.3%
11. Training and workshops (Diklat and bimtek): 29%
12. Equipment and machinery: 28%
13. Application licenses: 21.6%
14. Government assistance: 16.7%
15. Maintenance and upkeep: 10.2%
16. Other expenditures: 59.1%
Sri Mulyani emphasized that this efficiency plan includes operational and non-operational expenditures, but excludes employee salaries and social assistance. Therefore, she requested that ministers/heads of institutions identify these according to the established percentages.
Each K/L is required to submit its efficiency plan to the DPR (House of Representatives) and report it to the Minister of Finance or the Director General of Budget (DJA) by February 14, 2025 at the latest.
If the revised budget report is not submitted by the stipulated deadline, the Ministry of Finance and the DJA will independently include the revision on page IV A of the Budget Implementation List (DIPA).