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February 8, 2025 | 10:10 am
TEMPO.CO, Jakarta - Social Affairs Minister Saifullah Yusuf, known as Gus Ipul, assured that social assistance programs (bansos) will not be affected by President Prabowo’s directive on budget efficiency. He even suggested that Prabowo might allocate additional funds for social assistance if necessary.
"There is even a possibility that the President will add more funding if needed, especially for programs that directly impact public welfare," Gus Ipul said when met at the parliamentary complex in Senayan on Thursday night, February 6.
The PBNU secretary-general emphasized that Prabowo has pledged not to reduce funding for social assistance programs, including the Family Hope Program (PKH) and the Health Insurance Contribution Assistance Program (PBI) under BPJS Kesehatan.
The Social Affairs Ministry’s budget was reduced by Rp1.3 trillion from its total allocation of Rp79.5 trillion. This adjustment aligns with Presidential Instruction No. 1 of 2025 on expenditure efficiency in the implementation of the 2025 state and regional budgets.
According to Gus Ipul, specific budget items to be cut are still under review. In a meeting with the House of Representatives’ Commission VIII, he presented several budget efficiency simulations. However, he confirmed that certain areas will be affected by the cost-cutting measures, including office supplies and official travel expenses.
"There are already budget provisions for FGDs, seminars, and other activities. We will cut costs wherever possible," he explained.
Under Presidential Instruction No. 1 of 2025, Prabowo mandated efficiency measures totaling Rp306.6 trillion in the 2025 state budget. This includes Rp256.1 trillion in budget reductions across ministries and institutions and Rp50.5 trillion in budget transfers to regional governments.
Following Prabowo’s directive, Finance Minister Sri Mulyani issued Circular No. S-37/MK.02/2025, which regulates budget efficiency measures for ministries and institutions in the 2025 fiscal year. Annex II of the letter outlines 16 expenditure items subject to cuts, with reduction percentages ranging from 10% to 90%.
Breakdowns of the budget cuts include a 90% reduction in office supplies (ATK), a 56.9% cut in ceremonial activities, a 45% reduction in meetings and seminars, a 51.5% cut in research and analysis, a 29% reduction in training and technical guidance, and a 40% cut in fees for activity-based outputs and professional services.
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