A Series of Budget-Saving Measures: From WFH to B50
The government has announced several budget-saving policies to anticipate the impact of the war in the Middle East. These steps are being taken amid the escalation of the Middle East conflict, which is causing a surge in global crude oil prices.
The policies were announced by Coordinating Minister for the Economy Airlangga Hartarto along with Minister of Energy and Mineral Resources Bahlil Lahadalia. “This policy programme is called the eight pillars of national work culture transformation, and it will later be supplemented with energy policies,” said Airlangga during a press conference on Tuesday, 31 March 2026.
Here are some of the policies the government is implementing to save the budget:
Implementing WFH every Friday
The government is implementing work from home (WFH) every Friday for civil servants (ASN) in central and regional agencies, effective from 1 April 2026. The private sector is also encouraged to adopt WFH. Sectors exempted from WFH include public services such as health, security, and sanitation, as well as strategic sectors like industry, trade, logistics, and finance.
According to Airlangga, the WFH policy has the potential to save fuel compensation in the State Revenue and Expenditure Budget (APBN) by Rp 6.2 trillion. Meanwhile, the total savings in public fuel expenditure are estimated at Rp 59 trillion.
Efficiency in official travel
In addition to WFH for ASN, Airlangga stated that the government is limiting the use of official vehicles by 50 per cent, except for operational needs and electric vehicles. ASN are encouraged to use public transport. Domestic official travel is being cut by 50 per cent and overseas travel by 70 per cent.
Budget reallocation
The government will redirect or refocus budgets from expenditure items such as official travel, meetings, non-operational spending, and ceremonial activities. Airlangga said the budget will be redirected to more productive spending, including rehabilitation and reconstruction of disasters in Sumatra. According to Airlangga, the potential for budget reallocation reaches Rp 121.2 trillion to Rp 130.2 trillion.
Optimisation of the free nutritious meals programme
Airlangga said the government is promoting the optimisation of the free nutritious meals (MBG) programme by providing fresh food five days a week. However, this excludes dormitories, 3T areas, and regions with high stunting rates. According to Airlangga, the potential savings from this policy reach Rp 20 trillion.
Implementing the B50 blend
To support energy efficiency, the government is implementing a B50 biodiesel blend policy starting from 1 July 2026. According to Airlangga, the implementation of B50 has the potential to reduce the use of fossil-based fuel by 4 million kilolitres. This policy is predicted to save biodiesel subsidies by Rp 48 trillion.
Regulating fuel purchases
The government will regulate fuel purchases using the My Pertamina barcode. The limit for purchasing Pertalite is 50 litres per vehicle. However, this restriction does not apply to public transport vehicles.