Cara Berbahaya Memotong Anggaran | Opini Tempo

Summary

The video discusses significant budget cuts across various ministries and government institutions in Indonesia, which were executed without clear criteria, creating a sense of favoritism. These cuts, ordered by President Prabowo Subianto to address financial inefficiencies, have led to disruptions in public services. Despite efforts to push forward populist programs, revenue shortfalls, and mounting government debt have contributed to the crisis. The cuts disproportionately affect public services, while some departments, like defense, remain unaffected. Experts warn that an oversized cabinet and wasteful spending could push Indonesia toward financial instability.

Takeaways

• 😀 The Indonesian government has implemented large-scale budget cuts across ministries and agencies, with unclear criteria and potentially biased decisions.
• 😀 President Prabowo Subianto's directive for budget cuts was formalized in Presidential Instruction No. 1/2025, aimed at efficiency in the 2025 fiscal year.
• 😀 The cuts amount to Rp 306.6 trillion, affecting both government ministries and regional funding, with particular cuts to key public service ministries like Public Works and Transportation.
• 😀 The budget cuts stem from a miscalculation in the 2025 state budget planning, which failed to account for the government's rising debt obligations.
• 😀 Under President Joko Widodo’s administration, Indonesia’s national debt has increased by almost Rp 6,000 trillion, creating significant fiscal pressure.
• 😀 Tax revenue collection has fallen short of expectations, largely due to issues with Indonesia's new digital tax system, leading to further budget deficits.
• 😀 By January 2025, tax receipts were significantly lower than the previous year, which exacerbated the budget deficit situation.
• 😀 Certain ministries, including Defense, Police, and the Attorney General’s Office, had their budgets preserved, raising concerns about favoritism in the budgeting process.
• 😀 The Ministry of Defense was allocated Rp 16.2 trillion, the National Police Rp 16.6 trillion, and the Attorney General's Office Rp 24.2 trillion despite overall budget cuts.
• 😀 The cuts have led to reduced funding for public services, including infrastructure maintenance, transportation subsidies, and public services such as free school meals.
• 😀 Critics argue that inefficiency in government spending, particularly in the size of the cabinet, could result in further budget mismanagement and may lead to Indonesia becoming a failed state if unaddressed.

Q & A

What caused the government to implement significant budget cuts in ministries and agencies?

The significant budget cuts were due to financial mismanagement and a budget plan that did not align with the reality of government debt. This was further compounded by lower-than-expected tax revenues.

Who was responsible for the implementation of the budget cuts?

The budget cuts were implemented by the government under the instruction of President Prabowo Subianto, who issued the Presidential Instruction No. 1/2025 on efficiency in state spending.

What was the total amount of the budget cuts in the 2025 fiscal year?

The budget cuts amounted to IDR 306.6 trillion, affecting 16 expenditure items, including IDR 256.1 trillion in ministry and agency spending and IDR 50 trillion in regional transfers.

What were the reasons behind the budget deficit in 2025?

The budget deficit was caused by lower-than-expected tax revenues, which were further impacted by issues in the digital taxation system, resulting in a significant shortfall in revenue collection.

How much tax revenue was collected by the Directorate General of Taxes by January 2025?

By January 2025, the Directorate General of Taxes had only collected IDR 50 trillion in tax revenue, far below the target of IDR 172 trillion from the previous year.

What impact did the financial challenges have on the government's ability to fund programs?

The financial challenges severely limited the government’s ability to fund various programs, leading to the temporary use of the remaining budget from 2024 to cover expenses for the first two months of 2025.

What criticism was directed towards the budget cuts under President Prabowo's administration?

The budget cuts were criticized for being implemented without clear criteria, with accusations that certain ministries and agencies, especially those that had successfully lobbied, were exempted from cuts, leading to perceptions of favoritism.

Which government institutions were largely unaffected by the budget cuts?

17 government institutions, including the Ministry of Defense, the National Police, and the Attorney General’s Office, were largely unaffected by the cuts and received large budget allocations.

Why was the allocation for the Ministry of Defense and other security agencies maintained despite the cuts?

The allocations for the Ministry of Defense, the National Police, and the Attorney General’s Office were maintained due to the perceived importance of national defense and security, which were prioritized in the budget.

How did the budget cuts impact public services?

The budget cuts severely impacted public services, with ministries like the Ministry of Public Works and the Ministry of Transportation seeing significant reductions, leading to concerns about the maintenance of infrastructure and public services.