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All Journal Jurnal Tata Kota dan Daerah JESS (Journal of Educational Social Studies) RABIT: Jurnal Teknologi dan Sistem Informasi Univrab Jurnal EMT KITA Abdimas Galuh: Jurnal Pengabdian Kepada Masyarakat Jurnal Pengabdian UNDIKMA KLIK: Kajian Ilmiah Informatika dan Komputer International Journal Software Engineering and Computer Science (IJSECS) International Journal of Management Science and Information Technology (IJMSIT) Perwira Journal of Science and Engineering (PJSE) Jurnal Ruaya : Jurnal Penelitian dan Kajian Ilmu Perikanan dan Kelautan jle
Naufal Haidar Ahmada
Institut Teknologi Dan Bisnis Muhammadiyah Purbalingga
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Budget Efficiency vs Public Service: A Critical Evaluation of Presidential Instruction No. 1 of 2025 Munawir, Munawir; Suherman, Agus; Ahmada, Naufal Haidar
Journal of Law and Economics Vol. 4 No. 2 (2025): NOVEMBER
Publisher : Yayasan Kawanad

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56347/jle.v4i2.376

Abstract

This study evaluates Presidential Instruction No. 1/2025 on Budget Efficiency using William N. Dunn's policy evaluation model across five dimensions: effectiveness, efficiency, adequacy, responsiveness, and equity. The policy mandates IDR 256.1 trillion in budget cuts, including IDR 50.59 trillion in regional transfers. The qualitative-descriptive approach analyzes official policy documents, Ministry of Finance publications, Indonesia Corruption Watch data, and international literature on OECD fiscal consolidation practices. While aiming to reduce wasteful spending, the blanket-cutting approach—lacking performance-based evaluation and empirical evidence—threatens service delivery in education, health, and infrastructure. Regional transfer cuts undermine local autonomy and service capacity, particularly concerning given that 88% of regions depend on central transfers. Comparative analysis with Australia, Latvia, and Chile reveals that Presidential Instruction No. 1/2025 lacks critical mechanisms: ring-fencing protections, performance-based evaluation, results-driven incentives, and adequate compensation schemes. The study recommends temporary moratoriums for vital sectors, systematic spending review mechanisms, selective budget reduction targeting ineffective and leakage-prone programs, and strengthened institutional capacity for value-for-money budget management. Implementation requires strong political commitment, effective inter-governmental coordination, and robust information systems to achieve fiscal efficiency without sacrificing public service quality.
Co-Authors Agus Suherman Ahmad Amri Nur Aji Priambodo Andriya Risdwiyanto Aulia Purbandini, Revi Darusman Darusman Devi Andriyani Diah Fatma Sjoraida Dian Sandri Dian Sandri Fadila Septiandiani Faqih al Anshori Fauzan, Tribowo Rachmat Imam Sarifudin Munawir Munawir Nofirman Purbandini, Revi Aulia Purwati Purwati Rachmiani, Rachmiani Revi Aulia Purbandini Yudi Basuki Yuliani, Tri Wahyu