Celvin Moniaga Sipahutar, Jakarta – Finance Minister Sri Mulyani Indrawati outlined the government's budget austerity measures to hundreds of global investors during her keynote speech at the Mandiri Investment Forum (MIF) in Jakarta on Tuesday.

The event, attended by 23,000 participants including 700 investors and business leaders, drew representatives from Hong Kong, Singapore, Malaysia, Thailand, the United States, the United Kingdom, Germany, Norway, the United Arab Emirates, and Australia.

Sri Mulyani said the efficiency measures are part of implementing Presidential Instruction No. 1 of 2025 on optimizing the state budget (APBN) and regional budgets (APBD).

"We are currently implementing budget efficiency and effectiveness across ministries and agencies. We're examining in detail the reasons, mechanisms, and amounts of cash flows requested for their programs," Sri Mulyani said.

She said that the directive from President Prabowo Subianto aims to channel government funds more effectively toward programs that directly benefit the public. Key priorities include free nutritious meal initiatives, food and energy self-sufficiency, and healthcare system improvements.

"President Prabowo has consistently emphasized the need for a cleaner, more efficient, and focused budget, especially in addressing the needs of the people," she said.

Under the directive, government budgets for the 2025 fiscal year will be trimmed by Rp 306.69 trillion ($18.9 billion). This includes a reduction of Rp 256.1 trillion in ministry and agency budgets and Rp 50.59 trillion in regional transfers.

Despite these cuts, Sri Mulyani assured investors that Indonesia remains committed to driving economic growth. She highlighted innovative strategies such as public-private partnerships and strengthening state-owned enterprises (SOEs) to achieve economic targets.

"President Prabowo has set an ambitious goal of 8 percent economic growth. To achieve this, we must employ diverse instruments, with a strong focus on improving productivity," Sri Mulyani said.

The forum served as a platform for the government to reaffirm its commitment to fiscal discipline while pursuing strategic investments to enhance economic resilience and sustainability.

Source: https://jakartaglobe.id/business/sri-mulyani-assures-foreign-investors-budget-cuts-wont-hinder-growt