Budget Efficiency Is More Than Spending Cuts, Says Minister Suahasil
New Finance Minister Suahasil Nazara explains how the government defines budget efficiency after taking office under President Prabowo.
Jakarta - Indonesia's newly appointed finance minister, Suahasil Nazara, emphasized during his inauguration on September 14, 2026, that budget efficiency extends beyond merely cutting government spending. Speaking at the State Palace in Jakarta, the minister explained that budget efficiency is an integral part of managing the State Budget (APBN), which comprises revenue, expenditure, and financing.He noted that while expenditure is crucial, the focus should be on making spending more efficient without compromising the planned output.
"On the expenditure side, of course, we always look for ways to make spending more efficient while still producing the output that has been planned," Suahasil stated.Suahasil further highlighted that the goal of APBN efficiency is to ensure that budgeted spending generates the maximum possible output, which ultimately benefits the public.
He stressed that efficiency is not synonymous with reducing government spending. "Efficiency means using the available spending to produce maximum output that provides benefits to the public," he clarified.Prabowo Subianto, Indonesia's president, has been championing an extensive budget efficiency policy since 2025. This policy has seen various ministries and government agencies implement spending cuts, along with funding allocated for significant government projects and programs.
Notable initiatives include the Free Nutritious Meals program and the Red and White Village Cooperatives.Suahasil, who previously served as deputy finance minister since October 25, 2019, is now the third finance minister under President Prabowo, succeeding Sri Mulyani Indrawati and Purbaya Yudhi Sadewa.
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