JAKARTA (Reuters) - Indonesia's President Prabowo Subianto called on Tuesday for more efficient government spending amid expected economic challenges caused by rising geopolitical tensions.
Prabowo, who took office in October, told his ministers and government officials that such tensions are expected to slow the growth of the world's major economies, without mentioning any country although citing a "military emergency" as an example.
"We cannot tolerate leaks, heavy spending, things that do not address the problems of our people, that aren't productive," he said, calling for fewer ceremonial events and seminars.
"Tensions, wars, heavy competition between major powers ... this causes economic uncertainties."
On Tuesday, Prabowo also presided over a launch of an application for state agencies to procure products which he said could make state spending more efficient.
About 3,621 trillion rupiah ($228.31 billion) has been allotted in the state budget for government spending next year, which represents an increase of 6% over this year, with the budget deficit forecast at 2.53% of the country's gross domestic product, lower than this year's outlook of 2.7%.
Prabowo has long touted his aim to accelerate Indonesia's economic growth to 8%, from 5% now, by developing industries that process the country's rich natural resources and relying on the economic impact of his flagship programmes, such as giving students free school meals.
During the speech, Prabowo also called for a more targeted subsidy scheme and to make sure all subsidies reach the poor.
($1 = 15,860.0000 rupiah)