2025 Budget Cuts Won’t Affect Public Services, Airlangga Assures

Erfan Maruf
February 10, 2025 | 9:41 pm
SHARE
Chief Economic Affairs Minister Airlangga Hartarto. (Photo Courtesy of Coordinating Ministry for Economic Affairs)
Chief Economic Affairs Minister Airlangga Hartarto. (Photo Courtesy of Coordinating Ministry for Economic Affairs)

Jakarta. Chief Economic Affairs Minister Airlangga Hartarto has assured that the 2025 state budget cuts will not disrupt public services, stating that all essential services will run as usual despite the spending reductions.

President Prabowo Subianto issued Presidential Instruction No. 1 of 2025 on Budget Efficiency for the 2025 State and Regional Budgets (APBN and APBD). Nearly all ministries will experience budget cuts.

The government has cut a total of Rp 306.69 trillion ($18.9 billion) from the 2025 budget, reallocating resources to priority programs. These include Rp 100 trillion for free nutritious meals for children and expectant mothers, along with initiatives for food and energy self-sufficiency and healthcare improvements.

Despite these cuts, Airlangga emphasized that public services and strategic programs will continue as planned, ensuring economic stability and public welfare.

Advertisement

"The budget efficiency ensures that impactful programs benefiting the people remain the government's focus," he said.

The policy is intended to help the government manage state finances more effectively without compromising priority initiatives that directly benefit the public.

Several budget allocations have been designated as untouchable. Deputy Minister of Public Works Diana Kusumastuti explained that the government has set priority areas that must remain fully funded. These include civil servant salaries, maintenance of state assets, and disaster relief reserves.

"Maintenance and disaster relief budgets must be protected. Disaster preparedness funds are non-negotiable, as are debt payments," Diana said.

Tags: Keywords:
SHARE

Related Articles


Business May 9, 2025 | 1:46 pm

Airlangga Invites Japanese Chamber Members to Invest in Indonesia’s Strategic Projects

Japan currently ranks as Indonesia’s sixth-largest source of foreign investment, with over 12,800 projects to date.
Business May 5, 2025 | 5:04 pm

Japan-Backed Muara Laboh Geothermal Reaches Financial Close for Expansion

Muara Laboh geothermal project's second unit will enter operations in 2027.
Business May 5, 2025 | 1:33 pm

Indonesia’s Q1 Economic Growth Slows to 4.87 Pct  

This was the lowest Q1 growth that Indonesia had ever recorded over the past three years.
News May 3, 2025 | 10:00 am

Indonesia Aims to Seal EU Trade Deal by Mid-2025 After Years of Talks

Indonesia aims to finalize its long-delayed CEPA trade pact with the EU by mid-2025, eyeing tariff cuts and equal market access benefits.
Business May 1, 2025 | 10:54 am

‘Early Bird Gets the Worm’: Airlangga Reflects on Swift Trade Talks with US

As Southeast Asia braces for the fallout from Washington’s sweeping tariff hikes, Indonesia is positioning itself as a proactive negotiator.
Business May 1, 2025 | 9:24 am

As US Tariff Looms, Indonesia Now Closer to Joining Mexico’s CPTPP Trade Club

The CPTPP is a trade pact that evolved out the Trans-Pacific Partnership (TPP) -- a separate agreement that the Trump-led US had exited.
Business Apr 30, 2025 | 11:47 pm

Airlangga: US Tariffs a Wake-Up Call for Indonesia to Reform

Indonesia ranks eighth among the countries affected by the US tariff hike, facing a 32 percent increase.
Business Apr 30, 2025 | 3:36 pm

Gov't Unlocks $5.2B in Budget Funds to Accelerate Spending

Indonesia unblocks Rp 86.6T in frozen budgets to speed up spending on Prabowo’s priority programs.
Business Apr 28, 2025 | 9:01 pm

President Prabowo Approves Task Forces to Address Tariffs, Unemployment, and Deregulation

Indonesia forms three task forces to tackle economic issues, focusing on US tariffs, job creation, and regulatory reforms amid global uncert
Business Apr 25, 2025 | 2:35 pm

Still No Talks of Mangga Dua’s Fake Goods in US Tariff Negotiations

The US has raised concerns over the counterfeit goods trade in Jakarta's Mangga Dua, a popular shopping district in North Jakarta.

The Latest


News 21 minutes ago

Jokowi: “No Choice But Court” to End Fake Diploma Accusations

“To be honest, I’m saddened that this case has come this far. I feel sorry for those who continue to deny the truth,” Jokowi said.
Business 2 hours ago

Indonesia Maintains 5.2 Pct Growth Ambition Despite Q1 Slowdown, IMF Downgrade

Indonesia aims for 5.2–5.8% growth in 2026, with a long-term goal of 8% by 2029, despite slowing GDP and global economic headwinds.
News 3 hours ago

Jakarta Ride-Hailing Services Largely Unaffected by Mass 'Offbid' Protests

Ojol drivers protest low fares and unfair treatment nationwide. Jakarta sees limited disruption, but regional protests grow more intense.
Business 3 hours ago

Trump’s Tariffs Could Trigger Mass Layoffs in Indonesia, INDEF Says

Indonesia may see mass layoffs in coming months as US tariffs and global trade tensions squeeze manufacturing and export sectors.
News 6 hours ago

The NBA's Final 4 Is Set: Thunder, Knicks, Wolves and Pacers Remain, and Parity Reigns Again

There hasn't been a back-to-back NBA champion since Golden State in 2017 and 2018.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED