Digital Ecosystem to Save Trillions in State Budget, Says Minister Luhut

Indonesia's digital transformation efforts are expected to yield significant savings, potentially preventing budget leaks worth trillions of rupiah, according to Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. He emphasized that developing a robust digital ecosystem is key to curbing corruption and enhancing efficiency across various sectors.

Pandjaitan pointed to the Simbara system, an inter-ministerial information system for minerals and coal, as a prime example of this digital push. He stated that further development of such systems, including for critical minerals like nickel, will streamline operations and create an environment where corruption is more difficult. "This is just about continuing to develop it. It will make things efficient. We are currently building an ecosystem that makes it difficult for people to corrupt, or at least narrows the space for corruption," Pandjaitan said.

The minister estimated that the digital ecosystem could generate efficiencies ranging from Rp1,500 trillion to Rp2,000 trillion, while also significantly reducing leaks. He drew parallels to the successful expansion of the digital social assistance program (Perlinsos) to 42 districts and one province. This initiative, which allows social aid registration via national ID number and facial verification, has drastically cut down processing times from days to minutes and reduced associated costs for citizens.

Pandjaitan highlighted that the technology developed by Indonesians has proven capable of solving long-standing challenges. He noted that the Perlinsos Digital portal integrates data from eight ministries through Digital Public Infrastructure (DPI), a novel approach for Indonesia. Nearly 370,000 citizens have already used the service, providing a solid foundation for its expansion. The minister concluded that accurate and integrated data empowers the President to make better-informed decisions, ensuring state aid reaches those truly in need.