Jakarta, INTI - Chairman of the National Economic Council (DEN) and Head of the Government Digital Transformation Acceleration Committee (KPTDP), Luhut Binsar Pandjaitan, stated that the development of digital infrastructure for public services has the potential to save the state budget by up to Rp2,000 trillion.
The projected savings would come from the digitalization of various public services, including social assistance distribution and export-import trade data reporting systems, which could reduce corruption, prevent under-invoicing, and improve the accuracy of government assistance programs, including the Free Nutritious Meals (MBG) initiative.
Speaking after the Coordination Meeting on the Social Assistance Digitalization Pilot Program across 42 cities and regencies at the DEN office in Jakarta on Wednesday (June 17, 2026), Luhut said that stronger digital governance could significantly minimize financial leakages and improve control over strategic national resources.
According to Luhut, the digital transformation of social assistance programs alone could generate hundreds of trillions of rupiah in state spending efficiencies.
AI-Based Digital System to Improve Transparency
In the long term, the implementation of AI-powered digital systems to ensure more accurate social assistance targeting is estimated to create budget efficiencies ranging from Rp170 trillion to Rp260 trillion, equivalent to approximately US$10–15 billion.
Luhut emphasized that the initiative is not only aimed at reducing expenditure but also at building a digital ecosystem that minimizes opportunities for corruption through greater transparency, accountability, and data traceability.
However, he noted that these figures remain strategic estimates rather than realized savings and will depend on the quality of data management and the successful expansion of the digital system. Every data modification, he added, must be supported by a clear audit trail to maintain integrity and public trust.
Conclusion
Indonesia’s public service digitalization initiative represents a major step toward building more transparent, efficient, and accountable governance. By leveraging digital infrastructure and AI-based systems, the government aims to reduce inefficiencies, improve service accuracy, and strengthen public trust.
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