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The 2025 Budget Reconstruction Involves Reductions Across 13 Ministries And Agencies, Resulting In Savings Amounting To Hundreds Of Trillions

The government has undertaken a budget reconstruction for several Ministries and Agencies (K/L) within the 2025 State Budget (APBN). This policy is outlined in the Circular Letter of the Minister of Finance Number S 37/MK.02/2025, which serves as a follow-up to Presidential Instruction (Inpres) Number 1 of 2025. This budget efficiency measure aims to align national expenditures with a more controlled fiscal condition. President Prabowo Subianto has set a target for a reduction in state spending for the year 2025 amounting to IDR 306.69 trillion. Consequently, each Ministry is now adjusting their budget ceilings through discussions with the House of Representatives (DPR) that commenced on February 12 and 13, 2025. The details are as follows: 

Ministry of Education and Culture 

Several ministries and agencies are affected by this budget cut, including the Ministry of Education and Culture, which initially received an allocation of IDR 33.55 trillion. Following the revision, it faced a reduction of IDR 7.27 trillion, resulting in a final budget of IDR 26.27 trillion. 

Ministry of Cooperatives 

The Ministry of Cooperatives also experienced a decrease of IDR 155 billion from its initial ceiling of IDR 437.3 billion, leaving a remaining budget of IDR 317 billion. 

Ministry of National Development Planning/Bappenas 

Meanwhile, the Ministry of National Development Planning/Bappenas faced a cut of IDR 1 trillion, although this figure was reduced by IDR 75 billion after the reconstruction. 

Otorita IKN   

The Authority of the Nusantara Capital City (IKN) has been affected by a budget reduction of Rp 1.15 trillion from an initial allocation of Rp 6.395 trillion, leaving a total of Rp 5.042 trillion available for the development and operations of IKN. 

Ministry of Tourism   

The Ministry of Tourism has experienced a significant budget cut of approximately 37 percent from its original allocation of Rp 1.4 trillion, resulting in a remaining budget of Rp 884.9 billion. 

Ministry of Administrative and Bureaucratic Reform   

The Ministry of Administrative and Bureaucratic Reform has also faced a reduction of Rp 184.9 billion from a total budget of Rp 392.9 billion, with employee expenditures being prioritized. 

Ministry of Home Affairs   

The Ministry of Home Affairs has seen its budget cut from an initial allocation of Rp 4.79 trillion to Rp 2.6 trillion. Secretary General of the Ministry, Tomsi Tohir, indicated that there has been a shift in efficiency from Rp 2.753 trillion to Rp 2.174 trillion. 

Ministry of Micro, Small, and Medium Enterprises   

The Minister of Micro, Small, and Medium Enterprises (UMKM), Maman Abdurrahman, announced that the budget for 2025 has been reduced from Rp 463.86 billion to Rp 220.9 billion. This total reflects a decrease from the previously planned cut of Rp 283 billion to Rp 242.9 billion. 

Audit Board of Indonesia (BPK)   

Furthermore, the Secretariat General of the Audit Board of Indonesia (BPK) has also undergone an efficiency reduction of Rp 1.38 trillion, which is approximately 22.49 percent of the initial budget of Rp 6.15 trillion, resulting in a revised budget of Rp 4.77 trillion for this year. 

Ministry of State-Owned Enterprises   

Minister of State-Owned Enterprises, Erick Thohir, has proposed a budget cut for his ministry from Rp 277.5 billion to Rp 215 billion. The reductions encompass a 50 percent cut in BUMN oversight, a 70 percent reduction in leadership facilities, a 66 percent decrease in official vehicles, a 54 percent cut in travel expenses, as well as efficiencies across various other areas. Erick emphasized that these efficiencies aim to optimize the budget without compromising oversigh

Tag: 2025 Budget Reconstruction APBN