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Prabowo calls for more prudent government spending amid global tensions
Prabowo told his ministers and government officials that such tensions are expected to slow the growth of the world's major economies, without mentioning any country although citing a "military emergency" as an example.
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President Prabowo Subianto arrives at the government palace to meet with Peru's President Dina Boluarte, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Lima, Peru, November 14, 2024. (Reuters/Agustin Marcarian)
P
resident Prabowo Subianto called on Tuesday for more efficient government spending amid expected economic challenges caused by rising geopolitical tensions.
Prabowo, who took office in October, told his ministers and government officials that such tensions are expected to slow the growth of the world's major economies, without mentioning any country although citing a "military emergency" as an example.
"We cannot tolerate leaks, heavy spending, things that do not address the problems of our people, that aren't productive," he said, calling for fewer ceremonial events and seminars.
"Tensions, wars, heavy competition between major powers ... this causes economic uncertainties."
Read also: Prabowo wants Danantara to drive local funding for govt projects: Minister
On Tuesday, Prabowo also presided over a launch of an application for state agencies to procure products which he said could make state spending more efficient.
About Rp3,621 trillion ($228.31 billion) has been allotted in the state budget for government spending next year, which represents an increase of 6 percent over this year, with the budget deficit forecast at 2.53 percent of the country's gross domestic product, lower than this year's outlook of 2.7 percent.
Read also: Govt to slash corn, salt, sugar import quotas for 2025
Prabowo has long touted his aim to accelerate Indonesia's economic growth to 8 percent, from 5 percent now, by developing industries that process the country's rich natural resources and relying on the economic impact of his flagship programs, such as giving students free school meals.
During the speech, Prabowo also called for a more targeted subsidy scheme and to make sure all subsidies reach the poor.
