Jakarta. President Prabowo Subianto recently told the World Governments Summit that his government had saved up to $20 billion in state spending amid mixed reactions towards his cost-cutting measures.

Prabowo has been making headlines for his budget efficiency order across ministries and government bodies, instructing them to save Rp 306.7 trillion (about $18.9 billion) by cutting non-essential spending items.  Amid heightened public attention on the large-scale budget cuts, Prabowo told the Dubai forum that Indonesia’s decision to embrace what he called a “sound financial stewardship” could help the country fund strategic projects.

“Through careful management of state funds, we have saved $20 billion. This is equivalent to 10 percent of our annual budget,” Prabowo said, speaking virtually at the high-profile conference on Thursday night.

He added: “The savings that were allocated to projects and programs without a clear strategy will now be used to finance more than 20 multibillion-dollar strategic projects that will transform the country.”

Prabowo did not mention which projects that he considered to have lacked a clear strategy.

The ex-defense minister then listed how Southeast Asia's largest economy would spend the $20 billion saved state funds. Indonesia is planning to redirect a portion of the money to move its critical mineral commodities, including nickel and bauxite, up the value chain. This way, Indonesia can make a bigger profit out of processing its minerals at home to produce and export goods of greater added value. The Prabowo administration has already established a special task force dedicated to speeding up this downstream industry development. Energy Minister Bahlil Lahadalia is in charge of this task force. 

According to Prabowo, Indonesia will invest in projects that advance food security, citing that it would help make Indonesia become a net food exporter within a few years. The money will also go into increasing protein production and supporting aquaculture as well as renewable energy projects. The government will use some of the $20 billion to develop substantial petrochemical industries and massive artificial intelligence (AI) data centers.

Prabowo also brought up the saved $20 billion later in the forum when promising that he would beef up the government’s fight against corruption -- something that he admitted was already in a “very alarming” state. 

"Good governance is the key. … I'm convinced that had I not saved that money [$20 billion], it would have disappeared into thin air,” Prabowo said.