JAYAPURA - The Papua Provincial Government is faced with major challenges in managing the 2025 budget after the issuance of Presidential Instruction Number 1 of 2025 concerning budget efficiency at the central and regional levels.

Of the total efficiency of IDR 300 trillion nationally, Papua must make savings of IDR 291 billion. Although infrastructure is the most affected sector, the government ensures that public services remain a priority.

Acting Head of the Papua Regional Financial and Asset Management Agency, Alexander Kapisa, explained that the Presidential Instruction ordered national efficiency of IDR 250 trillion at the central level and IDR 50 trillion at the regional level.

From this figure, Papua experienced a cut of IDR 291 billion based on a joint calculation by the Directorate General of Regional Financial Balance of the Ministry of Finance.

"The figure of IDR 291 billion has gone through careful exercise and calculation, by the Decree of the Minister of Finance Number 29 of 2025 which regulates the amount of efficiency transfer funds," said Kapisa.

The largest cut occurred in the General Allocation Fund (DAU) which is mandatory for infrastructure, which amounted to IDR 181.68 billion. This cut has caused some infrastructure projects to be delayed.

"The mandatory infrastructure DAU of IDR 181.68 billion has been exhausted without remaining. This sector is the most affected," said Kapisa.

In addition, the cuts also spread to the Special Allocation Fund (DAK), including road DAK of IDR 65.99 billion, food or agriculture DAK of IDR 5.17 billion, and fisheries DAK of IDR 19 billion.  The Papua Special Autonomy fund was also cut by IDR 19 billion.

Despite facing great pressure in the infrastructure sector, the Papua Provincial Government emphasized that basic community services, such as education, health, and stunting management, remain a priority.

"We will maintain public service spending as much as possible. Education and health continue to run as they should because these two sectors have a vital role for the community," he said. ***