Government Examines Budget Savings Through Ministerial Salary Cuts

Minister of State Secretary Prasetyo Hadi said the government is detailing a study regarding salary cuts for members of the Red and White Cabinet and the House of Representatives. The salary reduction plan will be implemented due to dwindling crude oil (BBM) stock reserves following conflict in the Middle East.

“We are detailing the study,” said Prasetyo at the Ministry of Defence Office in Central Jakarta on Tuesday, 17 [unclear date] 2026.

The presidential spokesperson claimed Indonesia’s BBM stock remains secure. The government is also endeavouring to maintain BBM supply for the next 25 days in accordance with national standards that account for storage capacity.

“Although this does not mean oil will run out after that. That is the storage mechanism. Once storage is empty, it is refilled,” he said.

Prasetyo continued that the current situation could serve as a lesson for implementing budget efficiency measures. For instance, various efforts the government could undertake to reduce BBM consumption. One approach involves migrating to the use of public transport.

During a Plenary Cabinet Session at the State Palace on Friday, 13 March 2026, President Prabowo Subianto emphasised the importance of cost-saving measures, despite the situation not yet entering a crisis phase. Prabowo cited Pakistan as an example, which has implemented extreme measures categorised as critical measures. They have reduced working days and cut government official salaries.

“This is Pakistan’s approach, yes. This is merely for comparison. So they consider this already critical. So it is called critical measures as if, for them, this is like our Covid period,” said Prabowo.