The 2025 Ministry Budget Cut by Rp256 Trillion: How Much Remains?

Economics & Macro

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Adi Ahdiat 03/02/2025 19:41 WIB

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President Prabowo Subianto targets Rp256.1 trillion in efficiency gains for the 2025 ministerial/institutional budget, from a total allocation of Rp1,160 trillion in the 2025 State Budget (APBN).

Ministry/Institution Budget in the 2025 State Budget and Efficiency Targets in Presidential Instruction No. 1 of 2025

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The 2025 Ministry Budget Cut by Rp256 Trillion: How Much Remains?

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Ministry/Institution Budget in the 2025 State Budget and Efficiency Targets in Presidential Instruction No. 1 of 2025

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President Prabowo Subianto has targeted efficiency measures, or cuts, to ministerial/institutional spending in 2025 amounting to Rp256.1 trillion.

This target is recorded in Presidential Instruction (Inpres) Number 1 of 2025, issued on January 22, 2025.

Before this Inpres was issued, in October 2024, President Joko Widodo had established the 2025 State Budget (APBN), allocating a budget of Rp1,160 trillion or Rp1.16 quadrillion for ministries/institutions.

However, with the instruction from the new president—targeting efficiency of Rp256.1 trillion, equivalent to 22% of the 2025 APBN allocation—the budget for ministerial/institutional spending this year is expected to shrink to Rp903.99 trillion.

Finance Minister Sri Mulyani has followed up on the Inpres by releasing Circular Letter S-37/MK.02/2025, which contains provisions on which budget items should be cut.

Each ministry/institution is then 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 in the Budget Implementation List (DIPA).

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."