President Jokowi: State Budget Must be Prioritized on Strategic Matters

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 9 April 2018
Category: News
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President Jokowi gives instruction at Plenary Cabinet Meeting on Availability of Indicative Budget Year 2018 and National Priorities Year 2019 at State Palace, Monday (9/4). (Photo: PR/Rahmat)

President Jokowi gives instruction at Plenary Cabinet Meeting on Availability of Indicative Budget Year 2018 and National Priorities Year 2019 at State Palace, Monday (9/4). (Photo: PR/Rahmat)

President Joko “Jokowi” Widodo reminded that the State Budget only contributes about 15% of Gross Domestic Product (GDP).

Therefore, the President told his Cabinet that budget allocation should be focused and prioritized only for strategic matters.

“If it is not strategic for national interest, it is not necessary,” said President Jokowi in his introductory remarks during the Plenary Cabinet Meeting on Availability of Indicative Budget Year 2018 and National Priority Year 2019 at State Palace, Jakarta, Monday (9/4).

On that occasion, President Jokowi explained that Government has been focusing on infrastructure-related matters for the last three and a half years and has already spent more than Rp300 trillion (USD 21.8 billion). The President added that the results can be clearly seen from how massive the development has been, including in the building of roads, ports, toll roads, railways, airports and others.

After the first major phase (infrastructure), President Jokowi said the Government will start second major phase, namely investment in human resources. According to the President, the Government this year is making the preparation and the implementation (of the programs) will be done next year.

“So the budget allocation of APBN 2019 is also to support improvement of human resources,” the President said.

President Jokowi also maintained that every ministry should design programs whose results will bring major changes for the country and reminded that the existing budget must be used efficiently.

“Let me give examples. Holding exhibitions and promotions. Budget for these two activities are allocated in 17 ministries but if the budget is managed in only one ministry/agency only, we can organize exquisite exhibitions to build a good branding for the country, ” the President explained.

At the same time, related to research and development, almost all ministries have their own R&D Department and if it is also managed only by one agency, the result will be significant, the President said.

For the record, the budget for R&D is reached Rp24, 9 trillion (USD 1,8 billion).

“Once again, the budget should be prioritized and focused on strategic matters. We should design a grand strategy and set the goals,” President Jokowi concluded.

Also attending the Plenary Cabinet Meeting were Vice President Jusuf Kalla, Coordinating Minister for Political, Legal and Security Affairs Wiranto, Coordinating Minister for the Economy Darmin Nasution, Coordinating Minister for Maritime Affairs Luhut B. Pandjaitan, Minister of State Secretary Pratikno, Cabinet Secretary Pramono Anung, Presidential Chief of Staff Moeldoko and other Ministers of the Working Cabinet. (MRA / FID / ES) (STU/EP/Naster)

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