Jakarta. Finance Minister Sri Mulyani Indrawati said Tuesday that nearly 1,000 civil servants at the Finance Ministry have been laid off as part of the government’s broader efforts to streamline spending and boost efficiency.

Speaking during a parliamentary hearing with the House Commission XI -- which oversees state finances and economic planning -- Sri Mulyani confirmed that the ministry had reduced its workforce by 1.26 percent, or 979 employees, despite an increasing workload related to state budget management.

“The number of Finance Ministry employees has dropped by almost 1,000, even though our responsibilities in managing the national budget have increased,” she said.

To offset the reduction in staff, the ministry has accelerated the adoption of digital systems across multiple functions, including travel administration, human resources, and budget operations.

“We're developing applications to support various administrative and operational needs,” Sri Mulyani added.

Despite the headcount reduction, Indonesia’s fiscal performance remained robust throughout 2024. The budget deficit stood at 2.29 percent of GDP -- narrower than the initial projection of 2.70 percent -- due to improved macroeconomic conditions in the second half of the year.

These improvements included a stabilizing rupiah, rising global prices for coal, nickel, and crude palm oil (CPO), all of which boosted state revenues. Government income rebounded from a 6.2 percent contraction in the first half to 2.1 percent growth in the second.

Inflation remained under control at 1.57 percent in 2024, while the economy maintained steady growth of around 5 percent. Investment rose by 4.6 percent, supported by sustained household purchasing power and government social assistance to cushion the impact of rising food prices.

“The state budget has effectively served as a shock absorber amid global economic turbulence,” Sri Mulyani said.

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