Stories From IndonesiaMay 22, 2025

Economic Outlook: Budget Cuts Spark Negative Reactions Across Indonesia

Indonesia’s Budget Cuts Spark Reactions Across the Nation

Based on reporting by Tempo.co contributors, February 18 to 21, 2025

JAKARTA/SEMARANG — Indonesia’s recent budget cuts, as reported by Tempo.co, mandated by President Prabowo Subianto’s Presidential Instruction No. 1/2025, have triggered a wave of reactions from government officials, student organizations, and the general public. The cuts, which aim to reallocate funds toward President Prabowo Subianto’s flagship initiatives, including the Free Nutritious Meals Program, have drawn both support and criticism.

Provincial Impact: Jakarta’s Response

Jakarta’s Provincial Government is among the regions affected, with its central government aid reduced by Rp 38 billion. Despite this, popular PDI-P Deputy Governor Rano Karno stated the reduction was manageable, considering Jakarta’s goal to boost its locally generated revenue to Rp 130 trillion in the coming year. “The reduction is not large and will not significantly impact our key programs,” Karno told Tempo on February 21, 2025. He added that (the province’s) efficiency measures would focus on non-essential expenditures, such as official travel. Cyril Raoul Hakim, communications coordinator for Jakarta’s transition team, emphasized that increasing locally generated revenue would reduce the province’s dependence on central government funding.

Student Protests: “Dark Indonesia”

While regional governments like Jakarta view the cuts as manageable, student organizations nationwide have voiced strong opposition. On February 17, 2025, hundreds of students from various universities staged protests under the banner of “Indonesia Gelap” (Dark Indonesia), organized by an alliance of campus student representative organizations (BEM SI). According to alliance coordinator Satria Naufal Putra Ansar, the protests reflect widespread fear and frustration over government policies that students believe undermine education and social welfare.

Education is free

Students’ key demands include:

  • Repeal Presidential Instruction No. 1/2025: Students demand the cancellation of the budget cuts, particularly those affecting education.
  • Reject Revisions to the Draft Law on Mineral and Coal Mining: They oppose granting mining licenses to universities, citing risks to academic independence and environmental sustainability.
  • Evaluate the Free Nutritious Meals Program (MBG): Students argue the program should be reassessed to ensure it targets those most in need without draining education funds. Dedi Irwansyah, President of the student representative organization at Andalas University (UNAND), noted that while improving nutrition is important, the free school lunch program should not come at the expense of education programs.
  • Reconsider Budget Cuts to Higher Education: Concerns that reduced budgets could hinder academic development and limit campus facilities.
  • Pass an Asset Confiscation Law: BEM SI called for swift legislation to combat corruption by seizing illicitly acquired assets.
  • Pay Unpaid Allowances for Professors: Students demanded the payment of overdue allowances for public university professors.
  • Base Policies on Scientific Research: Protesters urged the government to develop evidence-based policies that prioritize public welfare.
  • Streamline Government Spending: Reduce the size and costs of the Cabinet and cancel proposed amendments to laws relating to the military, police, and judiciary.
    • Efficiency, yeah right

    Student Protest in Semarang

    On February 18, 2025, students from the Semarang Alliance for Justice gathered in front of the Central Java Governor’s office. Photographs captured by Tempo’s Budi Purwanto show students holding banners denouncing the budget cuts, with some participants raising fists in protest. The demonstration, part of the broader “Dark Indonesia” movement, highlighted concerns that funding reductions would negatively affect higher education and limit opportunities for students and faculty.

    Yeah, right! – Ndasmu

    Calls for Broader Reform

    The protests also addressed broader governance issues, with students demanding the government halt policies not supported by scientific research. They called for the reinstatement of performance allowances for public university professors, frozen since 2020 due to budget pressures. The student alliance also urged the government to expedite legislation allowing the confiscation of illicit assets, a measure they believe is crucial for combating corruption.

    Student sit in outside the office of Central Java’s Governor

    Government Stance and Ongoing Debate

    The government has defended its budget cuts as essential for maintaining fiscal stability, citing the need to meet debt obligations and support priority programs. However, critics argue that reallocating funds to initiatives like the President’s free school lunch program may come at the expense of long-term investments in education and infrastructure. With protests continuing and provincial governments adjusting to reduced budgets, the debate over Indonesia’s fiscal priorities is set to continue.

    This article is based on reports published by Tempo.co, with contributions from Oyuk Ivani Siagian, Mega Putri Mahadewi, Melynda Dwi Puspita, Haura Hamidah, and Budi Purwanto, and is not authorized. Sources include https://www.tempo.co/politik/wagub-rano-karno-ungkap-pemprov-jakarta-kena-pemangkasan-anggaran-rp-38-miliar-1210297; https://www.tempo.co/politik/daftar-panjang-tuntutan-mahasiswa-untuk-prabowo-dalam-aksi-indonesia-gelap-1209055; and https://www.tempo.co/foto/arsip/aksi-gabungan-mahasiswa-semarang-untuk-indonesia-gelap-1208978

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