Jakarta – President of Indonesia, Prabowo Subianto, reminded officials to practice frugality and reduce financial leakages. He reiterated this message during the handover of the Budget Implementation Lists (DIPA) and the Regional Transfer Allocation Book (TKD) for the 2025 Fiscal Year, as well as the launch of the E-Catalog Version 6.0 at the State Palace, Jakarta, Tuesday (10/12).

Prabowo stated that the 2025 State Budget (APBN) was designed to maintain stability, inclusivity, and sustainability with caution, enabling the government to control spending prudently and plan effectively.

“Reduce wastefulness. We are now in a period of vigilance facing uncertain challenges. We must tighten our belts. Once again, I emphasize frugality; we must reduce budget leakages. I am determined to combat leakages at all levels,” said Prabowo.

Prabowo called on all parties, particularly regional leaders, to join the central government in saving resources for the benefit of the people.

“We must ensure that every rupiah of the people’s money reaches those who need it. We can no longer tolerate leakages, extravagant expenses, or expenditures unrelated to addressing people’s difficulties. Non-productive spending must stop,” said Prabowo.

According to Prabowo, non-essential expenditures, such as ceremonial events, studies, seminars, and similar activities, must be minimized.

“Now is the time to address problems directly!” he emphasized.

Prabowo also expressed gratitude for the successful efforts of the working groups in his administration in launching E-Catalog Version 6.0 as part of efforts to improve transparency, efficiency, and speed. The new version of the E-Catalog will be implemented starting January 1, 2025.

“This Version 6.0 catalog is expected to reduce procurement costs by 20–30% and administrative costs by up to 40–50%,” he said.

This sentiment was echoed by the Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan. He stated that the development of E-Catalog Version 6.0 would increase accountability and transparency for all government goods and services, with the entire transaction process—from contract ordering, payments, to delivery—integrated into one platform.

“In addition, the E-Catalog Version 6.0 will simplify the payment process and facilitate tax reporting for the purchase of goods and services,” said Luhut.

Luhut outlined at least five positive impacts of implementing the E-Catalog Version 6.0.

First, cost savings through a reduction in procurement expenses by 20–30%. Second, time efficiency, with processes that previously took months now streamlined to just a few weeks through automation and digital systems.

Third, increased transparency and accountability, as systems like the E-Catalog ensure competitive and transparent pricing while minimizing human intervention in procurement processes.

“This will also minimize corrupt practices. Fourth, enhanced supplier participation, as the online system simplifies participation in goods and services provision, eliminating barriers related to location or complex bureaucracy,” explained Luhut.

Luhut cited the success of Indonesia’s E-Catalog in attracting over 13,000 suppliers, providing significant opportunities for SMEs to contribute to national development.

“Fifth, budget optimization through the use of data analytics in digital systems, enabling the government to plan strategic expenditures and ensure every rupiah spent provides maximum benefit to the people,” he concluded. (RR)