Jakarta. The government is currently working on accommodating any changes to the public spending plan following the formation of a giant cabinet that introduced many new ministries.

Newly installed President Prabowo Subianto has established the 109-strong Merah Putih (“Red and White”) cabinet to help him lead Southeast Asia’s largest economy. 

Prabowo has split many ministries into two or even three. Indonesia now has a separate ministry in charge of housing affairs. The preceding Joko “Jokowi” Widodo government had a single ministry in charge of both housing and public works. Some ministries underwent nomenclature or name changes. For instance, Prabowo has added the term “downstream industry development” to the original Investment Ministry as Indonesia wants to move away from exporting raw materials. Indonesia now has the Presidential Communications Office, and a government body dedicated to eradicating poverty. 

Just a few days ago, Finance Minister Sri Mulyani inked a ministerial regulation on the new ministries’ spendings for the government transition period in 2024-2025.

“The ministerial regulation covers the new ministries’ assets, budget, and their budgetary code. So we have begun the budgeting process [for the new ministries],” Deputy Finance Minister Suahasil Nazara told reporters in Jakarta on Friday.

The newly established ministries now have time until Nov. 29 to adjust the so-called 2024 budget implementation list -- a document that lays out how they plan on spending the public money for the remainder of this year. 

Suahasil said: “We will also discuss with the ministries [any adjustments] that are yet to be included [in the 2025 state budget] this month, .., so they can immediately start the programs next year.”

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