Indonesia's Economic Tightening: Prabowo's Call for Efficiency Amid Tensions

Indonesia's President Prabowo Subianto urges efficient government spending in response to global economic uncertainties from geopolitical tensions. He emphasizes reducing non-productive spending and enhancing targeted subsidies, aiming for Indonesia to achieve 8% economic growth by focusing on natural resource industries and flagship programs like free school meals.

Indonesia's President Prabowo Subianto has called for a tightening of government expenditure as global economic challenges loom due to escalating geopolitical tensions. In a directive issued on Tuesday, Prabowo underscored the need to eliminate wasteful spending and focus on efficient allocation of resources.

Addressing his cabinet, he stressed that geopolitical tensions and competition among major powers are hindering economic stability. He advocated for cutting down on non-productive activities and emphasized the importance of directing funds to areas that directly benefit the public.

Prabowo, taking proactive steps, also launched an app aimed at improving procurement efficiency in public sector spending. With a robust budget of 3,621 trillion rupiah set for the next fiscal year, he envisions leveraging Indonesia's natural resources and flagship initiatives to boost economic growth targets significantly.

(With inputs from agencies.)