Politics · Indonesia · 2 hrs ago
Prabowo Promises Rp 400 Trillion in Savings Through Centralized Procurement
Indonesian President Prabowo Subianto says centralized procurement could save Rp 400 trillion in government spending.
He says agencies now buy many of the same goods separately, sometimes at widely different prices.
Prabowo estimates that around 30% of the Rp 1,200 trillion budget for goods and services is lost to inflated prices and corruption.
His plan is to have purchases made centrally, with the same prices, specifications and quality across government.
He says the savings will be sent to local governments soon, including Rp 100 billion for each provincial capital and at least Rp 20 billion for each district capital.
Prabowo says the additional funds must be used in a targeted way and that the savings will go toward public needs.
President Prabowo Subianto said centralized procurement could save Indonesia about Rp 400 trillion.
He said government agencies currently buy similar goods separately, sometimes at different prices.
Prabowo said the savings would be directed to the public, including through additional funding for local governments.
He promised Rp 100 billion for each provincial capital and at least Rp 20 billion for each regency capital.
- Who
- President Prabowo Subianto.
- What
- He promised savings of about Rp 400 trillion through centralized procurement and additional funding for local governments.
- When
- He made the promise at an event on Saturday, 14 November; he said the funds would be disbursed soon.
- Where
- At the opening of Muhammadiyah’s Tanwir and 114th anniversary event in Palu, Central Sulawesi.
- Why
- He said separate purchasing by government agencies leads to inefficiency, price differences and budget leakage.
This story does not have two clearly opposing sides.
Prabowo spoke at the opening of Muhammadiyah’s Tanwir and 114th anniversary event in Palu and outlined plans to centralize procurement.
Prabowo said additional funding for local governments would be disbursed.
- Estimated savings
- About Rp 400 trillion
- Goods and services spending in the state budget
- About Rp 1,200 trillion
- Estimated budget lost to mark-ups and corruption
- About 30%
- Funding for each provincial capital
- Rp 100 billion
- Minimum funding for each regency capital
- Rp 20 billion
What people are saying
All public money must be spent at the same price, with the same specifications, with the same quality.
So, if we can manage this, that means we can save Rp 400 trillion.
The budget is ready, I will disburse it soon. All these savings will be directed to the people.