NasDem Questions Effectiveness of Official Salary Cuts to Save State Budget
NasDem Party Central Board Chairman Irma Suryani Chaniago has cast doubt on the effectiveness of a plan to cut state official salaries, which President Prabowo Subianto is reviewing as a cost-saving measure in response to global economic pressures.
“Politically, this proposal sounds appealing, and the public certainly wants to see the elite make sacrifices. However, is cutting official salaries genuinely effective in saving the state budget?” Irma said on Tuesday, 17 March.
She revealed that based on calculations, the savings from such a policy would be minimal compared to the total state budget.
“The efficiency would only amount to approximately 0.02 per cent of the total state budget. Even if ministerial salaries were cut by 50 per cent, the annual savings would be only around IDR 52 billion,” she stated.
Irma explained that total expenditure for ministers and deputy ministers is estimated at approximately IDR 104 billion annually. If combined with salary cuts for parliamentary members, maximum savings would only reach around IDR 850 billion.
“On the surface, it appears substantial, but within the context of a state budget reaching IDR 3.842 trillion, that figure remains very small,” she emphasised.
According to her, cutting official salaries would not have a significant impact on the country’s fiscal condition.
“Even cutting the salaries of political elites in half would not make the state budget healthier or meaningfully reduce the deficit,” Irma added.
Nevertheless, she did not reject the proposal outright, but instead recommended that efficiency measures be focused on sectors with greater impact.
“I have no objection to this proposal, but it would be more effective if efficiency measures were drawn from large, non-urgent projects,” she said.
Earlier, President Prabowo Subianto had proposed official salary cuts as an option, citing Pakistan’s approach in addressing global crises as an effort to maintain economic stability.
“We cannot assume that we are safe regardless of what happens; we must make efforts to economise,” Prabowo stated.
He explained that Pakistan has implemented various cost-saving policies, such as 50 per cent work-from-home arrangements and reducing working days to four per week.
“They have also reduced the salaries of cabinet members and parliamentarians, and the proceeds are used to assist the most vulnerable groups,” he said.
Additionally, Pakistan has restricted fuel consumption, halted non-priority spending, and reduced overseas visits. Prabowo emphasised that such measures could serve as a reference for Indonesia in facing global pressures.
“This is merely an example. I believe we must also pursue cost-saving measures. I am confident that within two to three years we will be very strong, but we must still exercise austerity,” he concluded.
The proposal for cutting state official salaries is not merely a matter of numbers or savings, but a political statement that can become symbolic politics or moral authority. This was highlighted by Muhammadiyah Central Board Chairman Anwar Abbas in commenting on President Prabowo Subianto’s plan.
Economist from CORE, Yusuf Rendy Manilet, viewed President Prabowo Subianto’s move to open the option of reducing state official salaries as an initiative worthy of appreciation.
Purbaya also believed that there is currently no urgency for issuing a Government Regulation in Lieu of Law (Perppu) to expand the state budget deficit.
Rising global oil prices are deemed likely to place significant pressure on Indonesia’s 2026 State Budget. Nevertheless, the President stated that Indonesia is currently in relatively safe conditions.
On the spending side, according to him, another approach would be for the government to implement efficiency by focusing on various non-priority programmes.
Finance Minister Purbaya Yudhi Sadewa admitted that he was unaware of the proposal to expand the state budget deficit.