Govt tightens purse strings despite on-track budget
The Finance Ministry has announced mandatory belt-tightening in government institutions but at the same time insists that budget execution is on course to meet the fiscal plan for this year.
The Indonesian government has implemented stricter financial controls despite the budget remaining on track, according to Finance Minister Suahasil Nazara. In a recent press conference, the minister highlighted the "healthy" execution of the fiscal plan up to the end of September, citing favorable figures in terms of deficit, spending and revenue.
However, in an effort to enhance spending efficiency, a confidential circular issued on October 8 by the ministry mandates major cuts across various sectors. All government institutions are directed to reduce their fourth-quarter spending by 30%, with exceptions granted for costs associated with "priority presidential directives".
This includes limiting work trip budgets, postponing the acquisition of new motor vehicles, and deferring the procurement or renovation of official residences and government buildings. Deputy Finance Minister Luky Alfirman explained that the directive aims to ensure spending aligns with predetermined priorities, as reported by CNBC Indonesia.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
