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Indonesia turns to efficiency to keep budget deficit below 3 percent

Jakarta (ANTARA) – Indonesia will impose budget efficiency measures across ministries and state agencies to keep its fiscal deficit below the statutory three-percent ceiling, a senior minister said Thursday.Coordinating Minister for Economic Affairs Airlangga Hartarto announced the plan after a limited cabinet meeting chaired by President Prabowo Subianto at the presidential palace in Jakarta.“In line with directives from the plenary cabinet meeting and discussions with technical ministries, efficiency measures will be applied across ministries and agencies,” he told reporters.He said the policy forms part of broader efforts to ensure the deficit remains within the legal limit set by the government.Hartarto did not detail the scope of the planned cuts but stressed that funding for the government’s flagship Free Nutritious Meals program would remain intact.The program targets 82.9 million beneficiaries and has been positioned as a key social policy under the current administration.Separately, Finance Minister Purbaya Yudhi Sadewa said earlier this week that the government is preparing a comprehensive efficiency plan to support deficit control.He indicated that the measures would primarily focus on Additional Budget Allocations (ABT) across ministries and agencies, which he said have contributed to rising expenditure levels.“These allocations have caused the budget to expand, making them a logical focus for efficiency,” Purbaya said on Monday.The finance ministry will determine the initial framework for ministries and agencies to draft their respective efficiency plans, he added.Preparations for the adjustments are expected to take place over the coming week, with ministries required to align their spending priorities accordingly.Purbaya also noted that the planned cuts would not require a new presidential instruction, unlike earlier cost-saving measures introduced at the start of 2025 under Presidential Instruction No. 1 of 2025.