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Indonesia Budget Cut 2025 Impacting Research and Innovation Institutions

by Raidi
2025-02-12
in Economic
A A
Indonesia Budget Cut

The National Research and Innovation Agency (Pinterest)

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Jakarta, Indonesia Sentinel — President Prabowo Subianto has issued Budget Cut and efficiency on Indonesia 2025 State and Regional Budgets (APBN and APBD). The budget reductions would affecting multiple ministries and government agencies, including research funds within the research and innovations agencies.

Among the ministry and agencies in Indonesia, The National Research and Innovation Agency (BRIN) and research institutions under the Ministry of Higher Education, Science, and Technology (Kemendiktisaintek) would be affected by the budget cut.

BRIN is set to face a budget reduction of Rp2.074 trillion ($135 million) in 2025. BRIN Chairman Laksana Tri Handoko confirmed the cut, stating, “Yes, it is true. As per Presidential Instruction No. 1 of 2025, our budget has been reduced, just like other ministries and agencies,” he said as reported by Tempo on Thursday, February 6, 2025.

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BRIN’s initial budget allocation for 2025 was Rp5.842 trillion ($380 million). With the cut of approximately 35.52%, the agency’s remaining budget will be Rp3.767 trillion ($245 million).

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BRIN officials warn that the substantial reduction could disrupt ongoing research projects, limit policy-making based on scientific studies, and hinder innovation efforts essential for Indonesia’s global competitiveness.

According to Detik, during a meeting with the House of Representatives’ (DPR) Commission X on Wednesday, February 5, 2025, BRIN formally objected to the budget cut.

The agency, alongside DPR lawmakers, proposed to the Ministry of Finance that the reduction should not exceed Rp321 billion ($21 million). Lawmakers argued that maintaining research funding is crucial for strategic programs supporting technological self-sufficiency, sustainable development, and national competitiveness.

Deputy Chairman of DPR Commission X Lalu Hadrian expressed hope that the efficiency measures would not hamper research and innovation activities. “BRIN must be more creative and innovative in utilizing its existing budget to carry out its planned functions and programs for 2025,” he said.

Research under Ministry 

Fauzan Adziman, Director-General of Research and Development at Kemendiktisaintek, confirmed that his directorate would also be impacted by the budget cuts. “We in research and development are, of course, part of this efficiency process,” he stated during a press briefing at the ministry’s headquarters in Central Jakarta on Tuesday, February 11, 2025, as reported by Tempo.

However, the exact reduction in the research budget has yet to be finalized, as discussions are still ongoing within the ministry.

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Fauzan noted that Kemendiktisaintek’s research budget was already relatively small, at Rp1.2 trillion ($78 million) out of the total Rp57 trillion ($3.7 billion) allocated to the ministry. He cautioned that any further reduction could significantly impact research funding.

To mitigate the impact, the ministry is striving to minimize reductions in research funding. “We are working to ensure that cuts to research funding are as small as possible,” he explained.

Based on internal discussions, the ministry has identified non-essential research projects that could be postponed to accommodate the budget adjustments. “Some research initiatives that are not critical may be deferred. We have already identified these projects,” Fauzan added.

The budget cuts to BRIN and Kemendiktisaintek raise concerns about the future of research and innovation in Indonesia. With reduced funding, critical programs aimed at technological self-sufficiency, sustainable development, and national competitiveness could be at risk.

As the government moves forward with its efficiency measures, the challenge remains in ensuring that Indonesia’s scientific progress is not compromised, allowing the country to maintain its position in the global innovation landscape.

 

(Raidi/Agung)

Tags: AgencyBRINBudget CutIndonesia newsMinitryResearch and Innovation
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