Prabowo Says Centralized Procurement Could Save Rp 400 Trillion

On Saturday, November 14, 2026, President Prabowo Subianto announced in Palu, Sulawesi Tengah, that government procurement faces an estimated 30% loss due to markups and corruption.

Corruption and markups waste 30% of goods and services budget

Prabowo stated that government spending on goods and services from the APBN reaches approximately Rp 1,200 trillion. “Belanja barang dan jasa dari APBN kita sekitar Rp 1.200 triliun, dari Rp 1.200 triliun diperkirakan 30% hangus karena mark up, penggelembungan alias korupsi,” President Prabowo Subianto said, noting that out of that total, around 30% is estimated to vanish due to inflation of budgets, markup practices, and corruption.

Prabowo mengungkapkan bahwa sepertiga APBN dialokasikan untuk barang dan jasa dengan 40% darinya diperkirakan hilang, mencapai sekitar Rp 480 triliun atau hampir 30 miliar dolar AS, berdasarkan laporan yang diterimanya selama acara HUT Partai Nasdem di Jakarta.

“Belanja barang, belanja jasa, di Indonesia sekarang tidak pakai logika. Masing-masing provinsi, masing-masing kabupaten belanja sendiri-sendiri barang yang sama dengan harga yang berbeda-beda. Setiap rumah sakit beli obat sendiri-sendiri. Jadi ada obat yang sama, tapi harganya 20-30 harga berbeda. Ini ingin kita rasionalkan, jadi satu belanja,” President Prabowo Subianto explained, noting that the current system lacks logic because individual provinces and districts purchase identical items independently at wildly varying prices.

For example, hospitals procure medicines separately, leading to dozens of different price variations for the exact same pharmaceutical product across various regions.

Centralized procurement could save the state 40% of expenditure

To combat these inefficiencies, the administration plans to rationalize procurement by consolidating purchases into a single centralized system. Prabowo said that standardizing prices, specifications, and quality across all ministries and roughly 500 districts could save the state approximately 40% of the expenditure.

“Jadi, kalau kita bisa atur ini berarti kita bisa hemat Rp 400 triliun, dan saya buktikan sebentar lagi akan saya kumpulkan semua gubernur dan semua bupati, dalam waktu dekat saya akan tambah biaya, tapi biayanya harus diarahkan,” said Prabowo Subianto, President.

Antara News Megapolitan reported on Saturday, November 14, 2026, that the resulting savings will be redirected toward regional development and public welfare. Prabowo outlined plans to provide immediate additional funding directly to local governments, allocating Rp 100 miliar extra to each provincial capital and a minimum of Rp 20 miliar to each kabupaten.

School repairs and fishing village construction targets increase

Antara News Megapolitan said that the financial efficiency drive also supports expanded educational infrastructure, raising the target for school repairs from an initial 71,000 to 88,000 schools within the year. The administration targets the construction of 1,000 to 1,200 fishing villages by the end of 2026, with an additional 2,000 villages planned for 2027.

How much is allocated for goods and services in the APBN?

How much is allocated for goods and services in the APBN?

The state budget allocates approximately Rp 1,200 trillion for government goods and services procurement, representing roughly one-third of the total APBN according to presidential figures.

What specific procurement example did Prabowo highlight?

Prabowo highlighted hospital medical procurement, noting that individual hospitals buy the same pharmaceutical products independently, resulting in dozens of price variations for identical drugs.

What financial additions are planned for local governments?

The administration plans to distribute an additional Rp 100 miliar to each provincial capital and at least Rp 20 miliar to each district within a short timeframe.