President Joko Widodo Instructs Budget Tightening

Thursday, 13 July 2017 , 13:00:00 WIB - Economy

President Joko Widodo (second right) is seen arriving to lead a cabinet meeting at the State Palace, Jakarta, Thursday (22/6). (ANTARA)

JAKARTA, GRES.NEWS – President Joko Widodo has instructed all ministries and government institutions to tighten their budget spending. On 22 June 2017, he has issued Presidential Instruction No.4/2017 on Efficiency Measures at Ministries/Government Institutions in the Implementation off the State Budget 2017.

The presidential instruction has sliced the budget spending for ministries and government institutions by Rp16 trillion, from Rp237.098 trillion to Rp221.098 trillion.

In detail, the Ministry of Transportation will see its 2017 budget spending cut from Rp11.951 trillion to Rp9,951 trillion. The Ministry of Public Works will see its budget spending slashed from Rp20.232 trillion to Rp19.715 trillion. The Ministry of Marine Affairs and Fishery, Rp4.877 trillion to Rp4.525 trillion and the Ministry of Energy and Mineral Resources will see its budget trimmed down by Rp461.068 billion.

President Joko Widodo had planned the budget tightening since drafting the Draft State Budget 2016. Back then, the National Development Planning Agency (Bappenas) and the Ministry of Finance sought sectors that deserve the budget tightening measure.

Bappenas head Sofyan Djalil said that, in determining the sectors that would be subject to the budget tightening, his agency and the Ministry of Finance adopted a priority scale.

"The budget tightening was performed in a number of dimensions. The first dimension was Benefits as Priority. The second dimension was Considerations We Take to Determine the Priorities," he said.

The President has instructed ministries and government institutions to cut spending for routine activities and transfer the budget to capital spending activities. "Please review all the routine activities that have been performed for years. I think we can cut a lot of spending. We can save a lot and the money we saved can be transferred to capital spending activities," he said.

President Joko Widodo has set the 2018 national economic growth target at 5.6 percent.