Commission E Cuts the Budgets of its Partner Agencies by Rp30 Billion to Improve Efficiency of the 2026 Regional Budget

Commission E of the East Java DPRD has undertaken efficiency measures in the deliberation of the Draft Regional Revenue and Expenditure Budget (RAPBD) for Fiscal Year 2026 by rationalizing, or reducing, budget allocations for a number of partner institutions.

The total budget reduction amounts to Rp30 billion, aimed at improving the effectiveness and efficiency of regional budget utilization to ensure it is well targeted and results-oriented.

“This efficiency measure is part of Commission E’s commitment to ensuring that the regional budget is utilized appropriately, effectively, and delivers tangible benefits to the public,” said Rasiyo, Spokesperson of Commission E DPRD Jatim, on Monday (03/11/2025).

Details of Budget Cuts to Partner Agencies

Rasiyo explained that the reductions are made following a comprehensive review of expenditure components that can still be streamlined without disrupting institutional performance and priority programs.

1. East Java KONI (Indonesian National Sports Committee)

The budget is reduced by Rp5 billion, derived from cuts to office stationery expenses, procurement, maintenance, working meetings, activity support, planning, and official travel.

The allocation decreases from Rp35 billion to Rp30 billion.

2. East Java Scout Movement Regional Council (Kwarda Gerakan Pramuka)

The budget is cut by Rp3 billion through the elimination of honoraria, holiday allowances (THR) for board members, and the 13th-month salary.

Total allocation declines from Rp15 billion to Rp12 billion.

3. East Java KORMI (Indonesian Community Recreational Sports Committee)

The allocation is reduced by Rp3 billion due to adjustments in activity volumes and prices, as well as the elimination of secretariat operational costs.

The budget now stands at Rp4.545 billion, down from Rp7.545 billion.

4. East Java Demasindo Foundation

This institution receives the largest reduction, amounting to Rp16 billion, through adjustments to the honorarium value provided to mosque imams without reducing the number of beneficiaries.

The allocation falls from Rp36.1 billion to Rp20.1 billion.

5. East Java Baznas (National Zakat Agency)

The budget is reduced by Rp3 billion through savings on leadership honoraria, official travel expenses, and ceremonial activities.

Rasiyo stressed that this reduction must not affect zakat funds collected from the public, resulting in Baznas’ allocation declining from Rp6.25 billion to Rp3.25 billion.

Reallocation and Impact on the 2026 APBD

Rasiyo added that the Rp30 billion in savings would not remain idle. The funds will be reallocated to partner institutions under Commission E that still require additional financing.

The total additional funding needs proposed amount to Rp79.2 billion.

“With a remaining funding gap of Rp49.2 billion, we urges the East Java Provincial Government can seek alternative sources, such as the projected budget surplus (SiLPA) for Fiscal Year 2025, potential excess local revenue (PAD), or the Rp300 billion previously planned for borrowing from the East Java MSME Bank,” he explained.

These efficiency measures are in line with the cross-commission oversight policy at the East Java DPRD, which emphasizes effective budget absorption and efficiency in public spending.

Commission E Emphasizes Transparency and Budget Effectiveness

Rasiyo emphasized that this efficiency policy is expected to maintain regional fiscal balance without compromising public services and priority programs for the people of East Java.

“Commission E will continue to oversee the implementation of the 2026 budget to ensure it is efficient, transparent, and results-oriented,” he concluded.