Jakarta, July 23, 2025 – The Europe Today: Indonesian President Prabowo Subianto has urged key cabinet members, including Finance Minister Sri Mulyani Indrawati, to intensify fiscal reform efforts and maintain strict control over the State Budget (APBN) deficit. The directive was delivered during a limited meeting at the Presidential Palace in Jakarta on Tuesday evening.
According to Cabinet Secretary Teddy Indra Wijaya, the meeting followed discussions on optimizing special economic zones and included updates on the progress of APBN deliberations currently underway at the House of Representatives.
“President Prabowo gave strategic instructions aimed at preserving the country’s fiscal stability and ensuring that the APBN remains a vital instrument to drive and sustain national economic growth,” Wijaya stated on Wednesday.
The President underscored the importance of deregulation to eliminate overlapping or overly complex regulations, thereby fostering a more conducive environment for sustainable economic development.
Wijaya also noted that preparations are underway for the formulation of the 2026 State Budget Draft and its accompanying financial notes, which President Prabowo plans to personally present to the Parliament in August.
In a separate statement, Finance Minister Sri Mulyani Indrawati confirmed that President Prabowo had instructed her to align the APBN with priority government programs. “The President gave clear guidance, urging us to enhance state revenues and ensure that spending is focused on critical programs,” she told reporters after the meeting.
Minister Indrawati highlighted several flagship initiatives, including the Free Nutritious Meals program, Sekolah Rakyat (People’s Schools), Red and White Village Cooperatives, and nationwide school renovation efforts.
On the issue of deregulation, the Finance Minister noted that President Prabowo emphasized reducing dependency on the APBN and improving regulatory frameworks to support investment, trade, and business growth.
Also in attendance at the meeting were Coordinating Minister for Economic Affairs Airlangga Hartarto, State Secretary Minister Prasetyo Hadi, and Deputy Finance Ministers Suahasil Nazara and Thomas Djiwandono.
