Prabowo's Budget Allocation Raises Questions About Economic Effectiveness

Large Budget Doesn't Guarantee Economic Impact

The Indonesian government is preparing a substantial allocation of Rp 2,567 trillion for President Prabowo Subianto's priority programs in the 2026 State Budget (RAPBN 2026). However, economic experts are cautioning that the size of this budget allocation does not automatically translate into significant economic impact.

Expert Analysis on Budget Effectiveness

Nailul Huda, Director of the Center of Economic and Law Studies (Celios), emphasized that the effectiveness of budget absorption is crucial. He stated that 'the key to budget absorption is the effectiveness of the budget. The budget can be effective if implemented optimally.' This perspective highlights the importance of proper program design and execution in achieving desired economic outcomes.

Case Study: Makan Bergizi Gratis Program

The Makan Bergizi Gratis (MBG) program serves as a relevant example. Despite receiving a significant allocation, its impact on the Gross Domestic Product (GDP) is estimated to be minimal at 0.06%. This limited impact is attributed to the program being funded through the reallocation of existing education funds. The example illustrates how budget reallocation can affect the overall economic stimulus generated by such programs.

Implications for Economic Policy

The challenge for the government lies in ensuring that these large budget allocations are channeled into programs that can effectively stimulate economic growth. The focus should be on creating programs with clear, measurable outcomes that can positively impact various sectors of the economy.

Conclusion

While the allocation of Rp 2,567 trillion represents a significant commitment to Prabowo's priority programs, the actual economic impact will depend on the effectiveness of these programs and their implementation. The government must prioritize careful planning and execution to maximize the benefits of this substantial budget allocation.