2026 State Budget Efficiency: 15 Ministry/Agency Expenditure Items to Be Cut
JAKARTA. Starting next year, the government plans to implement major budget efficiencies in the expenditures of ministries and government agencies. Finance Minister Sri Mulyani has confirmed that at least 15 types of spending will be cut, ranging from office supplies to business travel.
This policy is outlined in Minister of Finance Regulation (PMK) Number 56 of 2025, which governs the procedures for implementing spending efficiency in the 2026 State Budget (APBN). The goal is clear: to ensure that the budget is used as effectively as possible without disrupting public services.
“The amount of expenditure efficiency for each ministry/agency is determined as a certain percentage of the expenditure amount per item and per type of expenditure,” reads Article 3 paragraph (2) of PMK 56/2025, as quoted from cnnindonesia.com.
15 Expenditure Items to Be Cut
Several types of spending set to be trimmed in 2026 include:
- Office supplies
- Ceremonial activities
- Meetings, seminars, and similar events
- Studies and analyses
- Education and training (Diklat), technical guidance (Bimtek)
- Activity honorariums and professional services
- Printing and souvenirs
- Rental of buildings, vehicles, and equipment
- Application licenses
- Consulting services
- Government assistance
- Maintenance and repairs
- Business travel
- Equipment and machinery
- Infrastructure
This list is largely the same as the one targeted for cuts in 2025. However, the exact reduction amount for each ministry/agency has not yet been announced. The final figures will be revealed after President Prabowo Subianto delivers the Financial Note and the Draft State Budget (RAPBN) 2026 on August 15, 2025.
Budget Identification
Ministries and government agencies will be required to identify expenditure items that can be trimmed. The proposed budget revisions will then be discussed with the House of Representatives (DPR RI). If approved, the Ministry of Finance will block a portion of the funds in the Budget Implementation List (DIPA).
However, this budget freeze may be lifted under certain conditions, such as for employee expenses or office operations, to support presidential priority programs, or for activities that increase state revenue.
“The Minister of Finance may adjust spending items based on the president’s directive,” states Article 3, paragraph (5) of the regulation.
Sri Mulyani emphasized that the efficiency amounts will be communicated directly to each ministry/agency and will be non-negotiable, although they will still take into account the country’s tax revenue targets. (KEN)
