This study examines how fiscal adjustment measures under Presidential Instruction No.1/2025 affected infrastructure planning and budgeting in Indonesia, especially through the involvement of Multilateral Development Banks (MDBs). Using qualitative methods, the research analyzes planning and budgeting documents alongside interviews with government officials. The findings show that despite the government’s narrative of major spending cuts, total expenditure at the Ministry of Public Works eventually exceeded the initial budget. Adjustments mainly occurred through shifts in spending composition and project prioritization. Although MDB-financed projects were formally exempt from cuts, they were indirectly affected by changes in planning and budgeting systems. MDBs mainly acted reactively, adapting strategies to maintain project portfolios rather than shaping policy outcomes. Overall, the study highlights that fiscal adjustment is a politically driven process that redefines development priorities, institutional practices, and planning systems, while “efficiency” serves more as a policy narrative than a purely fiscal measure.