Indonesia Targets 80 Trillion Rupiah in Savings as Oil Shock Forces New Cost-Cutting Plans
Jakarta is preparing budget efficiencies and a work-from-home policy while protecting Prabowo’s flagship free meals program
Indonesia is seeking up to 80 trillion rupiah in savings to cushion its economy from the impact of rising global oil prices and the broader fallout from the Middle East conflict. The government says it is looking at multiple cost-cutting steps, including a national work-from-home plan, while keeping major priority programs intact.
Government Is Chasing 80 Trillion Rupiah in Savings
Presidential spokesperson Prasetyo Hadi said Indonesia is targeting around 80 trillion rupiah in savings, and that figure was later confirmed by the presidency. Current reporting says the government is trying to build a financial buffer as oil prices remain elevated because of the Middle East war.
President Prabowo Subianto said the administration is making every effort to reduce costs by cutting energy use and expanding renewable energy, especially solar power. However, officials have not yet detailed exactly where all of the savings will come from.
Work-From-Home Plan Is Part of the Response
Indonesia is also finalizing a flexible work policy that would allow one day of remote work in a five-day week to reduce commuting and fuel use. Coordinating Minister for Economic Affairs Airlangga Hartarto said the scheme is intended to improve energy efficiency as oil prices rise.
The plan is expected to apply to civil servants, regional government employees, and potentially parts of the private sector, with rollout targeted for after the Eid holidays. Officials say the duration of the policy will depend on how global oil prices and international tensions develop.
Work-From-Home Plan Is Part of the Response
Indonesia is also finalizing a flexible work policy that would allow one day of remote work in a five-day week to reduce commuting and fuel use. Coordinating Minister for Economic Affairs Airlangga Hartarto said the scheme is intended to improve energy efficiency as oil prices rise.
The plan is expected to apply to civil servants, regional government employees, and potentially parts of the private sector, with rollout targeted for after the Eid holidays. Officials say the duration of the policy will depend on how global oil prices and international tensions develop.
Fuel Subsidies Also Remain in Place
Indonesia is continuing its fuel subsidy policy, which reportedly covers around 30 to 40 percent of consumer fuel costs and accounts for roughly 15 percent of the national budget. That means the government is trying to absorb part of the external energy shock while still tightening spending elsewhere.
So far, unlike some other countries, Indonesia has not seen widespread fuel queues despite higher oil prices. That has allowed Jakarta to focus on preventative savings and efficiency measures instead of crisis rationing.
Bigger Goal Is Economic Stability Under Pressure
These savings measures are tied to Prabowo’s wider economic agenda, which aims to lift growth from 5.1 percent last year to 8 percent by 2029. But the oil shock has complicated that path, especially as Indonesia tries to preserve its fiscal discipline and protect household purchasing power at the same time.
For Indonesians, the immediate issue is whether the government can cut costs without weakening key social programs or growth. For Singaporeans and regional observers, the story matters because Indonesia’s response to the oil shock will affect Southeast Asia’s broader economic stability, business costs, and investor sentiment.
Indonesia is trying to respond to the oil shock with targeted savings, lower fuel use, and more flexible work arrangements, while shielding politically important programs like free meals and fuel subsidies. The balancing act is clear: Jakarta wants to stay fiscally disciplined without looking unprepared for a longer and more expensive energy crisis.
Sources: Malay Mail (2026) , Straits Times (2026)
Keywords: Indonesia 80 trillion savings, Indonesia work from home policy, oil shock Indonesia, Prabowo budget savings, Airlangga Hartarto WFH, Indonesia fuel efficiency plan