Gov't Clarifies Rp931.64 Million Official Car Budget as Standard, Not Mandatory

22 hours ago 6

TEMPO.CO, Jakarta - Indonesia's State Secretary Minister Prasetyo Hadi explained that the Rp 931.64 million budget per unit for official cars for Level I officials is a standard cost. He emphasized that this amount does not have to be fully spent.

"Each year, the government sets standard costs. So, when we make purchases, there are regulations to follow. It doesn’t mean we must spend the entire amount," he said at the Presidential Palace Complex in Central Jakarta on Tuesday, June 10, 2025.

Prasetyo also clarified that the car procurement is unrelated to the government’s budget cut policy. He noted that budget cuts are not intended to limit government actions.

According to him, the purpose of budget cuts is to encourage more productive use of resources. "Efficiency doesn’t mean we can't do anything. The idea is to allocate resources toward more productive efforts," he said.

The Ministry of Finance previously set the standard cost for official vehicles for Level I officials at Rp931.64 million per unit, and Rp1 billion for electric vehicles.

These cost provisions are outlined in the Minister of Finance Regulation (PMK) Number 32 of 2025 on Standard Input Costs for the 2026 Fiscal Year, signed by Minister Sri Mulyani Indrawati.

This unit cost is intended to support the operational needs of ministries and agencies, including official, office, field, and bus vehicles.

"For new work units approved by the Minister of Administrative and Bureaucratic Reform, vehicle procurement must be done gradually based on available funds," the regulation states, as quoted on Sunday, June 8, 2025.

For battery-based electric vehicles (KBLBB), the procurement cost does not yet include delivery or installation expenses for charging stations.

Eka Yudha Saputra contributed to the writing of this article.

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