Finance Minister Purbaya's Strategy to Address Middle East Conflict Risk: Minister Salaries and Free Nutritious Meal Programme Open to Cuts

Jakarta — Finance Minister Purbaya Yudhi Sadewa has responded to discussions about cutting government officials’ salaries as part of the government’s strategy to anticipate the impact of Middle East conflict.

According to Purbaya, reducing ministerial salaries would not be problematic if deemed necessary. He even assessed that current official salaries are already relatively high.

“It’s fine if ministerial salaries are cut; they are already quite excessive,” said Purbaya when met at Beringharjo Market in Yogyakarta on Tuesday, 17 March 2026.

Economic activity continues to show expansion. “The economy is still performing well; everything is moving quickly with various expansions,” he said.

Regarding fiscal policy, Purbaya assured that the government has not yet made a decision on budget cuts. He explained that the Ministry of Finance is still conducting simulations and assessments whilst considering developments in global oil prices, which are highly volatile amid global uncertainty.

“No budget cuts have been decided yet. We are conducting exercises and monitoring global oil price developments,” he said.

The government, Purbaya continued, will continue to monitor global conditions, including the impact of Middle East conflict on energy prices and domestic economic stability before determining further policy measures.

Beyond this, Purbaya has also been considering options for improving the efficiency of the Free Nutritious Meal (MBG) programme budget. The budget items to be cut are those deemed unproductive.

Purbaya said the government will improve efficiency by cutting unproductive spending unrelated to the programme’s core needs. He gave examples such as repeated proposals for vehicle procurement, which would be rejected.

Therefore, Purbaya assured that the government will continue to implement the MBG programme effectively and efficiently.

“The MBG programme will not be cut except for unproductive spending. How will we determine this? We shall see. If they propose buying motorcycles again, it will be rejected. Buying computers again, rejected. Unnecessary spending unrelated to food provision,” said Purbaya following an inspection at Tanah Abang Market on Monday, 9 March 2026.