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Budget estimation for Prabowo's bloated Red and White Cabinet

Source
Tempo - October 22, 2024

Ni Made Sukmasari, Jakarta – After the inauguration on Monday, October 21, 2024, President Prabowo Subianto's Red and White Cabinet is official with 48 ministers, 5 key officials not under coordinating ministries, and 56 deputy ministers.

This cabinet lineup includes Sri Mulyani, who has returned as Minister of Finance. So, what is the estimated budget for Prabowo's bloated cabinet?

As someone who has served as the state treasurer in two presidential terms, Sri Mulyani is known as unyielding in handing out budget approvals. However, the Director of Public Policy at Celios, Media Wahyudi Askar, believes that may change going forward

"Even though she is known to be stern, that may rupture under strong pressure from political actors and other ministries," Askar told Tempo via messaging application on Sunday, October 20, 2024.

Prabowo's government will bear the burden of financing large projects, such as the National Capital City (IKN) and the free nutritious meal program.

The Head of the National Nutrition Agency, Dadan Hindayana, once said that the free meal program is likely to disburse Rp800 billion per day, or Rp400 trillion, once fully implemented. This will prompt the finance minister to consider massive changes to the state budget by shifting other budget allocations.

Another one of Sri Mulyani's most significant challenges is the risk of being an incumbent for too long. According to Askar, long-time serving tends to eliminate innovation and may be resistant to fundamental changes. "There is a risk of stagnation in thinking and policy approaches, especially in regards to the improvement of tax revenue," he said.

Meanwhile, the Center of Economic and Law Studies (Celios) has produced a report on the salary and benefits of ministers, deputy ministers, and agency heads in the Prabowo-Gibran cabinet.

Based on the report, Celios estimates that the bloated Red and White Cabinet could expend up to Rp777 billion per year. "The increasing number of deputy ministers appointed will increase state spending, including the salaries of supporting staff, procurement of official vehicles and office facilities, and payment of pension benefits for the ministers and deputy ministers," said Celios Researcher, Galau D. Muhammad, in a report received by Tempo on Friday, October 18.

In its report, Celios assumes the ministers' salaries and benefits to be Rp150 million per month, while the deputy ministers are assumed to receive Rp100 million per month. Celios also assumes an operational budget per person in the cabinet of Rp500 million per month; therefore, in the next 5 years, the budget increase could reach Rp1.95 trillion.

The estimated figures have surged by Rp389.4 billion compared to the previous cabinet. Jokowi's Onward Indonesia Cabinet with 34 ministers and 17 deputy ministers spent Rp387.6 billion per year.

On the other hand, the Expert Council of the Prabowo-Gibran National Campaign Team, Muhammad Sirod, stated that President Prabowo Subianto's administration would bear a significant financial burden inherited from the previous administration.

It is known that former President Jokowi leaves over Rp8,000 trillion of debt legacy for Prabowo's Red and White Cabinet, equivalent to 39.13 percent of Indonesia's gross domestic product (GDP).

– Ni Made Sukmasari, Oyuk Ivani Siagian, Melanda Dwi Puspita, Nandito Putra, Vedro Imanuel G

Source: https://en.tempo.co/read/1931668/budget-estimation-for-prabowos-bloated-red-and-white-cabine

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