Jayapura, July 21, 2025 – The Papua Provincial Government has officially implemented a budget efficiency policy amounting to IDR 291 billion for the 2025 fiscal year. This decision follows Presidential Instruction (Inpres) Number 1 of 2025, which mandates expenditure control and budget optimization across ministries, agencies, and regional governments, effective as of January 22, 2025.
The largest budget cuts affect the infrastructure sector, including a reduction of IDR 181.68 billion in General Allocation Funds (DAU), IDR 65.99 billion in Special Allocation Funds (DAK) for road infrastructure, IDR 5.17 billion in food-related DAK, IDR 19 billion in fisheries DAK, and IDR 19 billion from the Special Autonomy Fund (Otsus). Despite these reductions, the government has emphasized that essential public services such as education, healthcare, and stunting prevention will remain top priorities in planning and implementation.
The Acting Head of the Papua Regional Financial and Asset Management Agency (BPKAD), Alexander Kapisa, confirmed that the budget adjustments were calculated and aligned with national regulations.
“The IDR 291 billion figure was determined through careful assessment and is based on Minister of Finance Decree Number 29 of 2025, which regulates the allocation of transfers under the national efficiency policy,” Alexander stated in Jayapura on Tuesday (July 15).
Meanwhile, Papua’s Provincial Secretary, Derek Hegemur Limbong, stressed that the efficiency policy should not hinder basic public service delivery.
“I urge all regional departments to maintain performance despite the budget constraints. Programs with direct impacts on public welfare must remain our top spending priority,” said Limbong during a recent operational planning evaluation.
The budget cuts are part of the government’s effort to ensure transparent, accountable, and efficient public financial management, while promoting more focused and targeted development. The policy aligns with the central government’s broader target of reducing national expenditures by IDR 300 trillion, with regional governments contributing IDR 50 trillion of that total.
All local government agencies (SKPD) in Papua have been instructed to adjust their programs accordingly. These changes will be implemented gradually starting in the second half of 2025, with continued focus on strategic programs in social welfare, education, and health services.
Through this policy, the Papua Provincial Government aims to maintain the stability of development and the quality of public services, despite operating with a tighter budget.
