Finance Ministry Budget Cut by Rp8.99 Trillion: Here's the Breakdown

The Indonesian Ministry of Finance's (Kemenkeu) budget for Fiscal Year 2025 has been cut by Rp8.99 trillion. This reduces the Kemenkeu's budget this year to Rp44.2 trillion, down from the previous allocation of Rp53.29 trillion.

This budget efficiency is outlined in Presidential Instruction (Inpres) Number 1 of 2025.

Finance Minister Sri Mulyani explained that the cuts were made to operational and non-operational expenditure budgets, excluding employee salaries and social assistance.

"Salary expenditures were not subject to efficiency measures, but goods and capital expenditures underwent very rigorous scrutiny for efficiency. This includes travel allowances, office supplies, seminars, studies, and ceremonial events," said Sri Mulyani in a working meeting with Commission XI of the DPR (House of Representatives) on Thursday, February 13, 2025.

The state treasurer detailed that this year's budget efficiency consists of five programs. First, the fiscal policy budget was cut by Rp47.35 billion, from an allocated budget of Rp59.19 billion to Rp11.84 billion.

Next, the state revenue management program budget was cut by Rp716.01 billion, to Rp1.67 trillion. Then, state expenditure management was cut by Rp37.18 billion, to Rp8.2 billion.

Furthermore, the budget for treasury management, state assets, and risk management was cut by Rp137.79 billion, to Rp100.35 billion. Finally, management support was reduced by Rp8.05 trillion, to Rp42.41 trillion.

Sri Mulyani stated that the 2025 budget cuts will become a new culture to be implemented in subsequent years.

"The 2026 State Budget is in its initial planning stages, but what we are doing now is expected to create a new culture," she said.