Social Affairs Ministry: Social Assistance Safe from Budget Cuts

TEMPO.CO, Jakarta - The has begun to implement efficiency in operational spending, such as office stationery, limiting FGD activities, restricting benchmarking activities, and limiting official travel. Nevertheless, Deputy Minister of Social Affairs Agus Jabo ensures that social assistance and the Family Hope Program (PKH) will not be affected.

"The important thing is that social assistance and PKH assistance will not be affected by this efficiency," said Agus Jabo via WhatsApp message to Tempo on Thursday, February 6, 2025.

Although Agus Jabo did not specify the budget's exact amount to be saved, the Ministry of Social Affairs has begun to adjust the distribution of social assistance and PKH aid to avoid the impact of efficiency in implementing Presidential Instruction Number 1 of 2025. "It is being adjusted so that the distribution process is not disrupted," said Agus Jabo.

Following Presidential Instruction Number 1 of 2025, Prabowo instructed his subordinates to make efficiency savings on the state budget for the 2025 fiscal year amounting to Rp306.6 trillion, consisting of efficiency savings of Rp256.1 trillion for ministry/agency expenditures and Rp50.5 trillion for transfer budget efficiency to regions.

Following Prabowo's instruction, Minister of Finance Sri Mulyani issued a letter S-37/MK.02/2025 regulating the efficiency of ministry and agency spending for the 2025 fiscal year. In the second attachment of the letter, 16 expenditure items that need to be cut, are listed with varying percentages, ranging from 10 percent to 90 percent.

The details are as follows: 90 percent for office stationery (ATK) expenses; 56.9 percent for ceremonial activities; 45 percent for meetings, seminars, and the like; 51.5 percent for studies and analyses; 29 percent for training and workshops; and 40 percent for output fees for activities and professional services.

Then, 75.9 percent for printing and souvenirs; 73.3 percent for building, vehicle, and equipment rentals; 21.6 percent for application licenses; 45.7 percent for consulting services; 16.7 percent for government aid; 10.2 percent for maintenance and care; 53.9 percent for official travel; 28 percent for equipment and machinery; 34.3 percent for infrastructure; and 59.1 percent for other expenditures.

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