January 12, 2026 | 03:33 pm
TEMPO.CO, Jakarta - The expression of Finance Minister Purbaya Yudhi Sadewa suddenly changed. He was explaining the realization of the 2025 State Budget and the fiscal posture of the 2026 budget when a question arose about the efficiency policy that continued this year. Purbaya appeared awkward in answering questions about efficiency, an issue highly sensitive for the government. The Finance Ministry's Director-General of Budget, Luky Alfirman, eventually stepped in to take over.
"Different, but with the same spirit," Luky said at an APBN Kita (Our State Budget) press conference at the Finance Ministry in Central Jakarta on Thursday, January 8, 2026. He claimed the policy was not the same as previous budget-cutting programs. "We are combing through spending. In line with the President's directive, we want spending that is efficient, well targeted, and effective," he said.
This round of efficiency refers to Finance Minister Letter No. S- 817/MK.03/2025 on Follow-Up Measures to Strengthen Support for the Implementation of the President's Directive Priorities for Fiscal Year 2026. According to Luky, the government uses an allocation system based on specially prepared output details-known as special RO-to accommodate funding for President Prabowo Subianto's priority directive programs.
Last year, the government implemented a savings program based on Presidential Instruction No. 1/2025, which mandated spending efficiency of Rp306.69 trillion (about US$18.3 billion). The difference now is that the special output details are treated as a "marked" budget item in the budget implementation list (DIPA) of each ministry or agency.
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