Regional Administrations Embrace Budget Efficiency Amid Presidential Instruction No. 1/2025
The Indonesian government has launched a new era of fiscal responsibility, with regional administrations across the nation expressing their readiness to implement President Prabowo Subianto’s Presidential Instruction (Inpres) No. 1/2025. This directive focuses on enhancing spending efficiency for both the State Budget (APBN) and Regional Budget (APBD) for the 2025 fiscal year.
Jambi Provincial Administration Takes Action
On February 17, 2025, the Secretary of Jambi Provincial Administration, Sudirman, outlined specific measures to align with the presidential directive. Central to these efforts is the reduction of the budget for official travel by 50 percent. Sudirman emphasized the integration of this measure into the Ministry of Home Affairs’ Regional Government Information System (SIPD).
“We hope the system change will be adopted smoothly. This will help us maintain productivity and work efficiency. Cooperation from all parties is essential for optimal public services,” Sudirman said during a press conference held at the Jambi Provincial Administration Office.
Additional Efficiency Measures by Jambi
Jambi’s administration has also initiated efficiency measures in other areas of expenditure, including infrastructure, office supplies, maintenance, printing, and goods and services.
Furthermore, the province has ceased recruiting contract-based employees since October 31, 2023. In its place, payment priorities are focused on Government Employees with Work Agreements (P3K) who have worked for at least two years and are registered in the government database.
Jambi Governor’s Appeal to State Civil Servants
Jambi Governor Al Haris has called on state civil servants (ASN) to continue innovating for increased productivity and efficiency. “We ask ASN to improve their competencies and skills to produce fruitful innovations,” he stated in a press release read by Sudirman.
He added, “ASN are expected to adapt to these changes while maintaining their performance in delivering the best services to the community.”
West Java Provincial Administration’s Commitment
West Java is set to issue a circular to regions within the province as a guide for budget efficiency in line with the presidential instruction. According to West Java Regional Secretary Herman Suryatman, the 2025 budget has been finalized at the end of 2024 and detailed in a Governor’s Regulation.
Herman highlighted the need for the West Java administration to make adjustments, efficiencies, and relocation plans that align with the vision and mission of the newly elected regional head from the 2024 gubernatorial election.
Penajam Paser Utara Regency’s Compliance
The Penajam Paser Utara Regency Administration in East Kalimantan has also implemented budget efficiency measures in accordance with Presidential Instruction No. 1/2025.
“Budget efficiency implementation is in line with the Inpres,” stated Muhajir, Head of the Regional Finance and Asset Agency (BKAD) of Penajam Paser Utara Regency, on February 14, 2025.
President’s Guidelines
President Prabowo Subianto has instructed ministries, institutions, and regional governments to streamline the state budget by up to Rp306.69 trillion (US$18.8 billion). He has also requested restrictions on ceremonial spending, travel expenses, studies, comparative studies, printing, publications, and seminars.
Conclusion
The proactive stance of regional administrations in implementing budget efficiency measures is a testament to their commitment to fiscal discipline and public service excellence. As these provinces lead the way, their strategies and initiatives will undoubtedly set a positive example for others to follow.
Through strategic planning, technological integration, and a strong focus on employee development, regional administrations are ensuring that budget efficiency becomes a cornerstone of their operations.
Your Thoughts?
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