Antara News·Indonesia·Saturday, November 14, 2026 at 01:28 PM UTC

Prabowo to redirect state budget savings to regional development

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Aditya R, Fauzul Azhim Bin Fakhrurazi

Jakarta (ANTARA) - President Prabowo Subianto emphasized that savings from the state budget would be redirected to regional development and public welfare through more efficient government spending.

“I ask you all to believe that Indonesia is strong. Indonesia has abundant wealth, and now we will no longer allow our wealth to be taken at will. Nor will we allow it to be enjoyed by anyone other than the Indonesian people,” Prabowo said when opening the 2026 Muhammadiyah Tanwir and the 114th Muhammadiyah Anniversary at Muhammadiyah University in Palu, Central Sulawesi, on Saturday.

Prabowo explained that one of the government's efforts to improve spending efficiency was to reform the procurement of goods and services, which had so far been conducted separately by individual ministries, provinces, and regencies.

According to the President, this procurement pattern had resulted in goods with identical types and specifications being purchased at different prices.

To address the issue, the government plans to consolidate procurement so that state spending can be better controlled and price mark-ups can be prevented.

“We want to rationalize this. Instead of 500 regencies making purchases independently, or dozens of ministries doing so separately, we want to make one purchase. All public funds must be spent at the same price, with the same specifications and the same quality,” the President said.

Prabowo said that spending on goods and services under the state budget (APBN) amounted to around Rp1,200 trillion. The government estimates that approximately 30 percent of that amount, or Rp400 trillion, could potentially be lost through price mark-ups.

“So, if we can organize this properly, it means we can save Rp400 trillion, Rp400 trillion,” Prabowo said.

Prabowo said the government planned to provide additional budget allocations to regional governments in the near future using the savings.

Each province would receive an additional Rp100 billion, while each regency would receive at least Rp20 billion.

“In the near future, I will disburse an additional Rp100 billion to each province, yes. Yes, for the provincial capitals. For each regency, at least Rp20 billion,” he said.

In addition to increasing regional budget allocations, the government will also expand the development of educational facilities through its school renovation program.

Prabowo added that spending efficiency had enabled the government to increase its target for school renovations this year from the initial 71,000 to 88,000 schools.

The government is also preparing to develop fishing villages to improve the welfare of coastal communities.

By the end of 2026, the government aims to build between 1,000 and 1,200 fishing villages, followed by an additional 2,000 villages in 2027.

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