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The Efficiency Of The Government Budget Will Not Impact The Performance Of The Ministry Of Trade

Trade Minister Budi Santoso emphasized that the government's budget efficiency will not impact the performance of the Ministry of Trade. The ministry plans to reduce its budget ceiling for the 2025 fiscal year by 38.88 percent, bringing it down to Rp1.132 trillion from the previous Rp1.853 trillion.

This statement was made by Minister Budi during a working meeting with Commission VI of the Indonesian House of Representatives on Thursday, February 13. The meeting also included the Minister of State-Owned Enterprises, Erick Thohir, the Chairman of the National Consumer Protection Agency, Muhammad Mufti Mubarok, and the Chairman of the Business Competition Supervisory Commission, M. Fanshurullah Asa.

"We ensure that budget efficiency will still cover basic operations, public services, and support for the Ministry's key programs. The main focus areas are Domestic Market Protection, Export Market Expansion, and Micro, Small, and Medium Enterprises Ready for Innovation and Export Adaptation (UMKM BISA Ekspor)," Minister Budi stated.

He added that the budget efficiency at the Ministry is a follow-up to the Presidential Instruction No. 1 of 2025 regarding spending efficiency in the implementation of the State Revenue and Expenditure Budget and the Regional Revenue and Expenditure Budget for 2025. The efficiency measures include cuts in travel expenses, office supplies, seminars, ceremonial events, honorariums, and other expenditures.

According to Minister Budi, the budget allocated for employee expenses is Rp694.037 billion, while the budget for basic operations, public services, and support for key programs is Rp438.6 billion. In response, Commission VI of the House of Representatives urged the Ministry to use the 2025 budget efficiently, ensuring it is targeted, maintains the quality of public services, and does not disrupt community empowerment programs.

The plan to approve three protocol amendments to trade agreements was discussed during a meeting between Minister of Trade Busan and Commission VI of the DPR. The three protocols include the Protocol to Amend the ASEAN Agreement on the Movement of Natural Persons (AAMNP), the Second Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), and the Protocol Amending the Agreement between the Republic of Indonesia and Japan for an Economic Partnership (IJEPA).

Minister Busan noted that the AAMNP was signed on November 19, 2012, in Phnom Penh, Cambodia, and was ratified through Presidential Regulation Number 53 of 2015. This agreement facilitates the movement of individuals and temporary professional workers within ASEAN, aiming to reduce barriers to cross-border movement.

He highlighted several positive impacts from the approval of the AAMNP protocol. "The approval is expected to increase Indonesia's welfare by USD 1.17 million through producer and consumer surplus, as well as boost output and job absorption, particularly in professional sectors like business services, education, construction, and healthcare," said Minister Busan.

Looking ahead to 2024-2045, Minister Busan projected a significant rise in the deployment of Indonesian professional workers in ASEAN countries, estimating it could reach USD 7.8 billion by 2045. This could enhance Indonesia's trade surplus in services with ASEAN.

Regarding the Second AANZFTA Protocol, Minister Busan mentioned that this agreement is expected to increase Indonesia's exports to all AANZFTA members by 0.16% after implementation.

Tag: Budi Santoso Ministry Of Trade