Prabowo earmarks additional Rp100 billion for each provincial capital

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44 minutes ago

Jakarta (ANTARA) – President Prabowo Subianto has prepared an additional Rp100 billion ($5.4 million) for every provincial capital and at least Rp20 billion for each district, sourced from government spending cuts.

“In the near future, every province will receive an extra Rp100 billion for its provincial capital, and each district will get at least Rp20 billion,” Prabowo said while opening Muhammadiyah’s 114th anniversary commemoration in Palu, Central Sulawesi, on Saturday.

Prabowo noted that districts with larger territories and greater needs stand a chance of receiving larger allocations.

The president also plans to convene all governors and district heads to discuss the disbursement of the funds.

According to Prabowo, the extra budget comes from curbing inefficient government spending on goods and services.

He added that spending on goods and services in the state budget totals around Rp1,200 trillion. Of that amount, roughly 30 percent – or Rp400 trillion – can be saved by overhauling procurement processes, which have long been prone to price markups.

Prabowo cited regional procurement practices, noting that purchases are still carried out separately even when the items share identical types and specifications.

One example is hospital drug procurement, which can result in 20 to 30 different prices for the exact same medication.

To address the issue, the government will unify its goods and services procurement system so that purchases are no longer handled separately by some 500 districts and dozens of ministries.

The president estimates that overhauling the procurement system could yield budget savings of up to 40 percent.

Through a centralized procurement mechanism, the government aims to ensure that goods of the same specification and quality are acquired at uniform prices.

Prabowo highlighted that savings generated from the spending cuts will eventually be returned to the regions and the public.

The president also noted that Indonesia sits along the Ring of Fire, leaving the country vulnerable to disasters, thereby stressing that every rupiah of the budget must be spent efficiently.