President Prabowo Highlights Importance of Deregulation, Targeted Spending

Minister of Finance Sri Mulyani delivers a press statement after a meeting at the Merdeka Palace, Jakarta, on Tuesday (7/22). (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto chaired a meeting with the economic ministers of the Red and White Cabinet at the Merdeka Palace, Jakarta, on Tuesday (7/22), receiving updates on the ongoing State Budget discussions in the House of Representatives.

Minister of Finance Sri Mulyani stated in a press statement that the President delivered comprehensive and strategic directives, especially regarding fiscal reforms, state spending priorities, and maintaining a controlled deficit.

“The President’s directives were very thorough. Reforms on the revenue side will continue, enabling us to achieve a sufficient state income. Spending will focus on key programs,” the Minister said.

The Minister further said that the President strongly emphasized maintaining the budget deficit at a healthy level, while ensuring the continued support of the State Budget in national economic growth.

“The President stated that if this can be achieved, market confidence will improve, the economy will remain on track, we can support the economy via the State Budget, and implement counter-cyclical policies,” she added.

In addition to the fiscal framework, President Prabowo also underscored the importance of deregulation in creating a conducive business climate and supporting sustainable economic growth.

“The President highlighted the need for various deregulation measures so that the economy can grow without always relying on the State Budget. This includes improving regulations to facilitate business, investment, and trade, encouraging many Danantara [entities] and enhancing governance,” she said.

Although the final budget details were not disclosed, the Minister said President Prabowo will formally deliver these points in his upcoming state address at the Plenary Session of the House of Representatives on 15 August. (BPMI of Presidential Secretariat) (FI/MUR)