Indonesian Political, Business & Finance News

Airlangga and Purbaya Deny Discussions on Minister Salary Cuts

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Airlangga and Purbaya Deny Discussions on Minister Salary Cuts
Image: MEDIA_INDONESIA

The discourse on potential salary cuts for ministers, which briefly emerged in the public sphere, has been confirmed as not yet entering official government discussions. Coordinating Minister for the Economy Airlangga Hartarto stated that there has been no specific agenda addressing the proposal, whether concerning salaries or allowances for ministers.

Airlangga made this statement at the Presidential Palace Complex in Jakarta on Tuesday (7/4). He dismissed assumptions that the government has begun discussing schemes for salary reductions for officials at the ministerial level as part of budget efficiency measures.

“We have never discussed it,” said Airlangga, as quoted from Antara on Tuesday (7/4).

According to him, the issue did indeed arise in the public domain but has not developed into an official discussion within the government. Therefore, Airlangga chose not to speculate further on the policy direction.

He even directed the question to the party that first raised the discourse in public. This stance indicates that, to date, there is no formal foundation that can serve as a basis for following up on the proposal for ministerial salary reductions.

In agreement with Airlangga, Finance Minister Purbaya Yudhi Sadewa also affirmed that the plan has not been officially discussed. Purbaya stated that the decision on the matter lies entirely with President Prabowo Subianto.

“Not yet, not yet. It will be from Mr President later, not from me,” said Purbaya.

Nevertheless, Purbaya had previously signalled that he would not object if ministerial salary cuts were indeed implemented. When met at the Coordinating Ministry for the Economy office on Monday (6/4), he described salary reductions for officials at the ministerial level as not a significant issue, provided there is an official decision from the head of state.

He even estimated that the cut could be around 25 percent. That statement drew public attention and strengthened assumptions that the savings scheme directly targets high-ranking state officials.

However, to this day, the government has shown no signs that the proposal will be formalised soon.

On the other hand, calls for budget efficiency are indeed gaining momentum amid rising global economic pressures and geopolitical tensions in the Middle East. In that context, Purbaya previously conveyed that the Ministry of Finance is preparing steps to more firmly cut spending by ministries and agencies.

He assessed that self-imposed reduction mechanisms by each ministry are not running effectively. Therefore, the government is considering setting reduction percentages directly from the centre, with ministries and agencies asked to adjust their spending structures accordingly.

The focus of efficiency, said Purbaya, is directed at spending items that can be temporarily postponed, particularly programmes deemed not to have significant impact or low acceleration towards national economic growth.

It is within this framework that the issue of salary cuts for ministers and deputy ministers has emerged. The discourse is viewed as a symbol of solidarity among government elites in curbing state spending amid fiscal pressures.

Nevertheless, the latest statements from Airlangga and Purbaya clarify one thing: the issue of ministerial salary cuts remains mere discourse, not a decision, and has not even entered official government discussions.

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