Indonesian Parties Back Prabowo’s Proposed Salary Cuts as Austerity Debate Widens

Coalition parties and ministers say they are open to pay reductions as Jakarta weighs savings to counter oil and war pressures

Support is growing inside Indonesia’s political establishment for President Prabowo Subianto’s proposal to cut the salaries of executive and legislative officials as part of a wider austerity push tied to the economic fallout from the United States-Israeli war on Iran. The idea, first raised by Prabowo at a cabinet session on March 13, is now being publicly endorsed by coalition parties, cabinet figures, and some opposition voices.

Prabowo floated the idea as part of a wider austerity package

Prabowo raised the salary-cut proposal during a plenary cabinet session on March 13, when he urged Indonesia to respond proactively to the energy and fiscal uncertainty triggered by the Middle East conflict. He cited Pakistan’s crisis response as an example, including pay cuts for officials, remote working, and delaying non-essential spending.

The proposal is part of a broader search for savings as Indonesia tries to cushion itself from higher oil prices without breaching its fiscal guardrails or cutting flagship programs too quickly. Finance Minister Purbaya Yudhi Sadewa has separately said ministries and agencies will face a new efficiency drive.

Coalition parties are signaling support

Golkar secretary-general Muhammad Sarmuji said the party is ready for its members serving in the cabinet and legislature to accept salary cuts if the country needs them. He framed the move as a sign of responsiveness and willingness to adapt.

The National Mandate Party, or PAN, also said it would support the measure if Prabowo decides to proceed. PAN deputy chair Eddy Suparno said the party would not only back the directive but help ensure broader public and coalition acceptance.

Even opposition voices are not rejecting it outright

The Indonesian Democratic Party of Struggle, or PDI-P, which is outside Prabowo’s governing coalition, said it did not object to the idea in principle. But it argued that any cuts should begin at the very top, starting with the president, vice president, ministers, and other senior officials.

That response matters because it suggests the proposal could attract wider political legitimacy, provided it is seen as fair and not selectively imposed on lower levels of government. It also increases pressure on Prabowo to show that any austerity plan will be led from the top.

Ministers are open, but experts say allowances matter more than salary

Human Rights Minister Natalius Pigai said he was willing to accept a pay cut if it benefited the public, even remarking that he would accept not being paid as a minister if necessary. Finance Minister Purbaya also said the government is reviewing the details, while stressing that cost-cutting should begin inside state institutions themselves.

Public policy expert Trubus Rahardiansah argued that the government should focus less on base salary and more on trimming allowances and loosely monitored perks. Reporting cited current ministerial pay rules as providing a base salary of at least Rp5 million per month plus Rp13.6 million in positional allowances, not counting other benefits and operational funds.

The real austerity debate is bigger than salaries alone

Analysts and political figures are also calling for a broader review of state spending. Suggestions include cutting ineffective programs, tightening ministry budgets, reducing perks across all levels of government, and even trimming the overall number of ministries and agencies in Prabowo’s cabinet, which is one of Indonesia’s largest in decades.

That points to the real issue beneath the salary-cut debate: symbolic reductions may help politically, but they will only matter fiscally if they are part of a deeper efficiency program. For Indonesians, the question is whether the government is serious about structural austerity or mainly trying to send a message of solidarity during an external shock.

The growing support for Prabowo’s proposed salary cuts shows that austerity is no longer just a technocratic discussion in Indonesia. It is becoming a political test of fairness, leadership, and whether the government can convince the public that officials are also prepared to share the burden of a tougher global environment. For Indonesia, the next step is not only deciding whether to cut pay, but proving that any sacrifice at the top will translate into real savings and credible fiscal discipline.

Sources: Straits Times (2026) , The Star (2026)

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