Prabowo Subianto Seeks Budget Savings Amidst US-Iran Conflict

Jakarta – Indonesian President Prabowo Subianto is considering implementing budgetary savings measures in response to the escalating conflict in the Middle East following the United States and Israel’s recent attacks on Iran. The move comes after observing Pakistan’s approach to safeguarding its budget amidst the heightened tensions.

Pakistan’s “Critical Measures”

During a plenary cabinet meeting at the State Palace in Central Jakarta on Friday, March 13, 2026, President Prabowo referenced Pakistan’s response to the US-Iran war, which they have characterized as requiring “critical measures.” He has asked the Indonesian government to study Pakistan’s strategies.

Potential Savings Measures

President Prabowo indicated that savings measures are necessary even before the situation deteriorates further, aiming to prevent the state budget deficit from widening due to potential increases in global oil prices. He expressed confidence in Indonesia’s economic strength over the next two to three years but stressed the importance of prudent consumption.

Specific measures under consideration include implementing work-from-home policies, improving efficiency and reducing fuel consumption. He has directed his ministers to further explore these options.

Digitalization to Combat Leakage

President Prabowo highlighted the government’s commitment to balancing the state budget and addressing issues of financial leakage. He specifically mentioned the potential of government spending digitalization (GovTech) to reduce budget leaks by up to 40 percent. He emphasized the need to tackle administrative manipulation, under-invoicing, and other forms of inefficiency.

Past Successes and Future Goals

Drawing on the experience of successfully navigating the COVID-19 pandemic, President Prabowo expressed confidence in the government’s ability to overcome current challenges. He suggested measures such as reducing commuting by encouraging civil servants to work remotely and considering a reduction in working days to achieve significant savings. The ultimate goal is to achieve a balanced state budget, eliminating the deficit altogether.