President Prabowo Subianto has announced his intention to implement\nausterity measures to address potential economic crisis resulting from\nthe United States and Israel\u2019s conflict against Iran. Prabowo cited the\nexample of Pakistan, which has already undertaken significant\ncost-cutting measures including salary reductions for cabinet members\nand parliamentary representatives.<\/p>\n
Speaking during a cabinet meeting at the Presidential Palace in\nJakarta on Friday, 13 March 2026, Prabowo described the current\nsituation as equivalent to the Covid-19 pandemic crisis. \u201cThey have even\nreduced salaries for cabinet members and for members of parliament, and\nall these salary cuts are collected to help the most vulnerable groups,\u201d\nPrabowo said.<\/p>\n
Pakistan has also implemented work-from-home policies for civil\nservants and private sector employees as part of its austerity strategy.\nAccording to Prabowo, the South Asian nation has reduced working days\nand cut government vehicle usage by up to 60 per cent. Additionally,\nPakistan has suspended overseas visits and prohibited government funding\nfor ceremonial events. Prabowo noted that Pakistan has shifted all\nhigher education institutions to online learning and closed schools for\ntwo weeks.<\/p>\n
These measures, Prabowo explained, help reduce fuel consumption at a\ntime when oil prices and supplies are volatile due to Middle Eastern\nconflicts. The Gerindra Party leader expressed hope that Indonesia would\nimplement similar cost-saving strategies, particularly regarding\npetroleum consumption. However, he acknowledged that the government is\ncurrently still reviewing which policies to adopt.<\/p>\n
Prabowo stated that the government would study feasible measures in\nthe coming days, emphasising that Indonesia must prepare for worst-case\nscenarios. \u201cWe hope the worst-case scenario will not occur in the Middle\nEast, but many forecasts suggest this could be a very prolonged\nconflict,\u201d he said.<\/p>\n
On Friday, 13 March 2026, Brent crude oil prices returned to the\nlevel of US$100 per barrel. Prices for West Texas Intermediate (WTI)\nfutures contracts also climbed. According to Trading Economics data,\nBrent crude futures reached US$101 per barrel by 14.00 on 13 March 2026,\nwhile WTI crude was quoted at US$97 per barrel.<\/p>\n
Brent crude had briefly touched a peak of US$117 per barrel on 9\nMarch. Current prices remain higher than the previous day\u2019s high of\nUS$100 per barrel on Thursday, 12 March.<\/p>\n
Military operations in the US-Israel conflict against Iran have\noccurred across several regions, including central Iran and Beirut. The\nsituation has escalated following reports that the Strait of Hormuz\u2014a\ncritical global energy trading route\u2014remains effectively closed. This\nwaterway handles approximately one-fifth of global oil distribution.<\/p>\n
The closure of this strategic passage has forced major oil producers\nin the Persian Gulf region, including Saudi Arabia, to reduce\nproduction. This has raised concerns about global energy supply and\nprompted investors to shift towards safe-haven assets such as gold.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/prabowo-seeks-austerity-measures-in-response-to-war-cites-pakistan-as-example-1773420963", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }