Indonesia’s Finance Minister Backs Salary Cuts for Officials Amid Middle East Conflict Concerns

Jakarta – Indonesia’s Finance Minister Purbaya Yudhi Sadewa has expressed support for President Prabowo Subianto’s plan to cut ministerial salaries as a cost-saving measure in response to global economic uncertainty fueled by the ongoing conflict in the Middle East. Minister Sadewa similarly affirmed the government’s commitment to maintaining stable fuel prices despite rising global crude oil prices.

Salary Cuts Supported

Minister Sadewa stated that reducing ministerial salaries is “okay” and even suggested that current salaries are already “too big.” Tempo.co reported on this development on March 17, 2026. The move, inspired by similar measures taken by the Pakistani government, aims to prevent the state budget deficit from widening due to global volatility.

Economic Stability and Budget Monitoring

Despite the global economic headwinds, Minister Sadewa emphasized that the Indonesian economy remains strong and continues to expand across multiple sectors. Tempo.co reported that Sadewa dismissed suggestions of an economic downturn, asserting, “The economy is still good, everything is running fast, all kinds of expansion.”

The Ministry of Finance is currently conducting simulations and studies to assess the impact of fluctuating world oil prices, but has not yet made a decision regarding budget cuts across ministries. Antara News reported that the government will continue to monitor global conditions before determining further policy steps.

Fuel Price Stability

Minister Sadewa reiterated the government’s commitment to maintaining stable fuel prices, despite pressure from the escalating conflict in the Middle East and rising global crude prices. Tempo.co reported on March 17, 2026, that Indonesia’s fiscal position is strong enough to absorb volatility in global oil prices. He confirmed that the state budget has sufficient funds to support the energy sector and protect household purchasing power.

Energy and Mineral Resources Minister Bahlil Lahadalia also stated that subsidized fuel prices, including diesel and Pertalite, would remain unchanged before Eid al-Fitr in 2026, even if global crude oil prices exceed US$100 per barrel. Tempo.co

Efficiency in Government Spending

Beyond salary cuts, Minister Sadewa is also focusing on improving efficiency in government spending, particularly within the Free Nutritious Meal (MBG) program. Unproductive spending, such as repeated requests for vehicle procurement, will be eliminated to ensure the program’s effectiveness. Antara News

The government remains committed to effectively and efficiently implementing the MBG program while prioritizing essential needs.