Instruction of President of the Republic of Indonesia Number 1 of 2025 on Budget Efficiency in Implementing the State Budget and Regional Budget 2025 is an instructional decree signed by President
Prabowo Subianto
Prabowo Subianto Djojohadikusumo (born 17 October 1951) is an Indonesian politician, businessman, and former four-star Indonesian Army, army general who is serving as the eighth and current president of Indonesia since 2024. He was previously t ...
on 22 January 2025, intended to streamline national and regional spending by cutting 306.69 trillion rupiahs. Its implementation has sparked numerous budget cuts and caused criticism by various parties.
2025 Indonesian student protesters demanded for its repeal.
Content
The document is a six-page long decree instructing the ministers of
Red and White Cabinet
The Red and White Cabinet (, abbreviated as KMP) is the current Cabinet of Indonesia. It was sworn in on 21 October 2024 by President Prabowo Subianto.
Although the cabinet was formally activated on 21 October 2024, two of Prabowo's cabinet a ...
, the commander of
Indonesian National Armed Forces
The Indonesian National Armed Forces (; abbreviated as TNI) are the military forces of the Republic of Indonesia. It consists of the Indonesian Army, Army (''TNI-AD''), Indonesian Navy, Navy (''TNI-AL''), and Indonesian Air Force, Air Force ('' ...
, the chief of
Indonesian National Police
The Indonesian National Police (, abbreviated as POLRI) is the national law enforcement and police force of the Republic of Indonesia. Founded on 1 July 1946, it was formerly a part of the Indonesian National Armed Forces, country's military si ...
, the heads of non-ministerial governmental institutions, the leaders of state secretariats, governors, mayors, and regents:
# To review the use in order to streamline the budgets of:
## Ministries under the state budget of 2025;
## The state budget of 2025;
## Any transfers of the state budget of 2025 into regional governments.
# To cut the state budget of 2025 amounting up to
Rp306,695,177,420,000, which consists of:
## Ministerial/institutional budget amounting up to Rp256,100,000,000,000; and
## Transfers to regional governments amounting up to Rp50,595,177,420,000.
# For ministers/institution leaders:
## To identify the plans to streamline spending of ministries/institutions according to the size set by the
Minister of Finance
A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position .
A ministry of finance's portfolio ...
Effects
The decree has greatly reduced budgets allocated to governmental bodies in Indonesia. Fifteen ministries and non-ministerial institutions were reportedly affected. The construction of the Capital City of
Nusantara has been also affected, since the budget allocated
Ministry of Public Works for 2025 has been reduced from 110.95 trillion to 29.57 trillion rupiahs. There are concerns of being stalled.
References
{{reflist
2025 documents
Decrees
Legal history of Indonesia
Prabowo Subianto