Indonesian President Advocates for Efficient Spending

JAKARTA (Reuters) – Indonesia's President Prabowo Subianto called on Tuesday for more efficient government spending amid expected economic challenges caused by rising geopolitical tensions.

Prabowo, who took office in October, addressed his ministers and government officials about the need for efficiency in response to these challenges. While not naming specific countries, he referred to a "military emergency" as an illustration of the situation.

> "We cannot tolerate leaks, heavy spending, things that do not address the problems of our people, that aren't productive," he stated, advocating for fewer ceremonial events and seminars.

He emphasized that "tensions, wars, heavy competition between major powers … this causes economic uncertainties."

On the same day, Prabowo launched an application for state agencies aimed at improving procurement efficiency, which he believes will enhance government spending.

The state budget for next year allocates about 3,621 trillion rupiah ($228.31 billion), reflecting a 6% increase compared to this year. The budget deficit is forecasted to be 2.53% of the GDP, an improvement from this year's 2.7%.

Prabowo continues to emphasize his long-term goal of accelerating Indonesia's economic growth to 8% from the current 5%. He aims to achieve this by tapping into the country's abundant natural resources and supporting initiatives like offering free school meals to students.

Additionally, during his speech, Prabowo urged for a more targeted subsidy scheme to ensure that all subsidies effectively reach the impoverished sectors of society.

($1 = 15,860.0000 rupiah)