Indonesia’s Finance Minister Purbaya Yudhi Sadewa Open to Salary Cuts for Ministers to Boost State Budget

Jakarta – Indonesian Finance Minister Purbaya Yudhi Sadewa has indicated his agreement with potential salary cuts for ministers and deputy ministers as a measure to bolster the State Revenue and Expenditure Budget (APBN) for 2026. The Minister stated that such cuts would be a “good” policy, noting that current salaries for these positions are already relatively high.

“Agree, that’s good, the salaries are already too high,” Purbaya said on Thursday, March 19, 2026, when questioned by reporters at the State Palace.

Budget Efficiency Discussions

Purbaya’s comments followed a coordination meeting with Coordinating Minister for Economic Affairs Airlangga Hartarto to discuss budget efficiency measures. The Minister explained that the extent of these cuts will be determined by the government pending approval from President Prabowo Subianto, and will apply to various ministries and institutions.

He emphasized the importance of centralized decision-making in this process, stating that individual ministries attempting self-directed cuts may not be effective. “I asked the ministry to cut it themselves, but when they were told that they didn’t want to cut it, they just increased it all. If possible, I’ll decide how much to cut, I’ll make the adjustments later. We’ll let them know later,” Purbaya explained.

Areas for Potential Budget Cuts

Several areas are being considered for budget reductions, including:

• Meetings held at luxury and non-essential hotels.
• Programs with limited direct impact on economic growth.

Purbaya suggested that prioritizing impactful initiatives and streamlining unnecessary expenditures will be key to achieving budget efficiency. “Various things. Unclear meetings, or policies that have a slow or little impact on economic growth, those can be chosen,” he said.

Further Considerations

When asked about potential reductions in official travel for government officials, Purbaya stated that this matter is still under discussion and awaits President Prabowo’s approval.

Earlier this month, on March 16, 2026, Purbaya revealed that President Prabowo had indicated a willingness to allow the APBN deficit to exceed 3% if Indonesia were to face an economic crisis. Source: CNN Indonesia

Purbaya has expressed support for cuts to ministerial and vice-ministerial salaries as a cost-saving measure. Source: CNN Indonesia

The government has affirmed its commitment to maintaining the APBN deficit within the 3% limit. Source: CNN Indonesia

Purbaya Yudhi Sadewa has served as Indonesia’s Minister of Finance since September 8, 2025, under President Prabowo Subianto. Source: Wikipedia He previously served as the 4th Head of the Indonesia Deposit Insurance Corporation from September 3, 2020, to September 8, 2025.