Implementing Prabowo's Instructions, Home Affairs Ministry Begins Discussions on Savings for Regional Governments

JAKARTA, KOMPAS.com - Indonesia’s Ministry of Home Affairs (Kemendagri) is currently discussing steps for budget savings as a follow-up to President Prabowo Subianto’s instructions regarding the impact of the Iran-US-Israel conflict.

Deputy Minister of Home Affairs Bima Arya Sugiharto stated that the discussions are being conducted across ministries.

“Discussions are still ongoing across ministries to implement the President’s instructions on government savings measures,” said Bima Arya on Friday (27/3/2026).

Therefore, the discussions also involve the Ministry of Economy to formulate appropriate steps.

He added that the government is also monitoring the fuel oil (BBM) energy crisis occurring in various countries due to the conflict.

“We are monitoring (it) as well,” he added.

Previously, President Prabowo has several times conveyed instructions on budget savings as a response to global dynamics, including the conflict in the Middle East.

One example mentioned is Pakistan’s steps in implementing efficiencies, such as work-from-home (WFH) for civil servants (ASN) and discussions on salary cuts for ministers.

“Don’t challenge the central government; there are many things that should be implemented by districts and provinces but are not,” said Prabowo during a discussion in Hambalang, Bogor.

He emphasised that trimming unproductive state spending aims to close loopholes for deviations and potential corruption in APBN management.

According to him, large-scale efficiency is an important step to safeguard the state’s finances and protect the people’s money.

These savings are carried out by reviewing various budget items deemed not to provide real benefits to society so as not to burden the state’s finances.