President Prabowo Subianto’s budget cut policy, which involves reducing ministerial budgets, is seen as having significant effects on rural development and agriculture.
The Ministry of Agriculture’s budget was reduced by IDR 10.28 trillion from an initial allocation of IDR 29.3 trillion, while the Ministry of Villages and Development of Disadvantaged Regions saw a cut of IDR 772 billion from its total allocation of IDR 2.19 trillion.
Professor Bambang Hudayana, head of the Center for Rural and Regional Studies (PSPK UGM) and Anthropology lecturer at the Faculty of Cultural Sciences (FIB UGM), stated that such large-scale budget cuts risk slowing rural economic growth.
He added that the cuts could also diminish the welfare of farmers, the majority of whom rely on the agricultural sector.
“The agricultural sector requires substantial budget injections, especially for food crops and horticulture. If government subsidies and support decrease, farmers’ access to fertilizers, seeds, and agricultural medicines will become increasingly difficult,” Professor Hudayana explained on Monday (Feb. 17).
He highlighted the impact of budget cuts on the availability of agricultural infrastructure, such as irrigation and other crucial supporting facilities.
“If water channels are non-functional or embankments are damaged and not repaired due to a lack of funds, agricultural production will drastically decline,” he elaborated.
Furthermore, the agricultural sector faces growing challenges amid climate change and global market fluctuations.
Several food-producing countries have begun limiting exports due to geopolitical tensions and climate crises.
This situation could increase food imports, ultimately burdening the national economy.
“The long-term effect is that if domestic production falls short and we have to import the goods, which aren’t available, it will be hazardous for Indonesia,” he added.
Professor Hudayana expressed concern over the potential impact on rural economic empowerment programs running through Village-Owned Enterprises (BUMDes).
With budget cuts, many BUMDes may lose support and guidance. Yet, numerous villages have already begun to grow their economies independently, such as through waste processing, used oil recycling, and tourism villages.
“If funding for support is reduced, these villages could lose their competitiveness,” he continued.
According to him, budget cuts should not target sectors that directly affect the livelihoods of the rural population.
He urged the government to find more farmer- and village-friendly solutions, such as strengthening local innovations, providing incentives for village-based enterprises, and ensuring that funds continue to support rural economic growth.
“We must not sacrifice rural development and agriculture, as the long-term consequences could affect economic and social stability,” he emphasized.
Author: Bolivia Rahmawati
Editor: Gusti Grehenson
Post-editor: Afifudin Baliya
Photo: Freepik