Government Details Plans for Salary Cuts to Cabinet Ministers and Parliamentary Members
The government has begun detailing a study on salary cuts for Cabinet members and parliamentary representatives amid global tensions to curb the budget deficit.
“We are currently detailing the study (for this option),” said State Secretary Prasetyo Hadi following a coordination meeting at the Defence Ministry in Central Jakarta on Tuesday, 17 March 2026.
Prasetyo stated that the option is being examined to strengthen the nation’s resilience, although Indonesia has not yet entered a crisis period. He noted that Indonesia continues to maintain fuel supplies for 21-25 days ahead in accordance with national standards that adjust storage capacity.
“Although from a fuel supply perspective we should not worry, as stocks are safe, the fuel reserve capacity we have simply indicates the storage mechanism – when storage empties it is refilled, when it empties it is refilled again,” Prasetyo explained.
Prasetyo acknowledged that Indonesia should view the global crisis as a valuable lesson to economize government spending. “There is much that can be done to reduce fuel consumption, such as how we migrate to public transport, how we reduce or limit the use of official vehicles. So we are finalising these matters,” he said.
This followed reports that President Prabowo Subianto plans to implement cost-saving measures following the escalation of the Middle East conflict. The austerity measures are based on Pakistan’s approach to managing crises, which considers the US-Iran conflict a critical situation requiring critical measures.
“This is merely an example. I believe we should examine this matter within several days. I think we must also endeavour to implement cost savings,” Prabowo said during a full cabinet session at the State Palace in Jakarta’s Central district on Friday, 13 March 2026.
The former Defence Minister stated that cost savings remain necessary even though the current situation has not reached the worst level. This would prevent the national budget deficit from expanding further due to rising global oil prices following the conflict.
“So I ask that this be discussed later, perhaps by the coordinating ministers, to assess our approach within several days. We managed Covid-19 successfully. We are capable,” Prabowo said.
“For example, some civil servants and officials need not go to the office, reducing congestion and implementing major cost savings. We must even consider reducing working days and other cost-saving measures,” he added.