Insight

Indonesia to Implement IDR750tn Budget "Efficiency" Program

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Algo Research Team


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Key Summary:


  • Budget "reallocation" is a better term as savings will be redistributed
  • IDR750tn program will come in three stages, with stage 2 and 3 coming
  • The budget savings will be reallocated for free-meal & Danantara

The recent budget “efficiency” measures introduced by the Indonesian government represent bold steps to curb unnecessary and bureaucratic expenditures.


Note that the terminology "efficiency" is inaccurate in our view since the government will reallocate the savings for key national initiatives such as the free-lunch program (MBG) and Danantara.


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