On Budget Cuts, Purbaya: Percentage Still Under Discussion

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has not yet confirmed the percentage of budget cuts for each ministry.

These cuts are aimed at keeping the state budget deficit at 3% of gross domestic product (GDP) to counter pressures from global crude oil prices, resulting from conflicts in the Middle East.

“If we cut, they might adjust accordingly. But the percentage will be discussed later,” he told the media at the DJP Mosque in Jakarta on Saturday (31/3/2026).

This option, he said, had previously been discussed in the Limited Coordination Meeting (Rakortas) with Coordinating Minister for Economic Affairs Airlangga Hartarto, held on Monday (16/3/2026).

“So it was discussed earlier; if fuel prices keep rising, the first step is efficiency. We have prepared the necessary steps for ministries or agencies (K/L) later,” Purbaya stated, as quoted on Saturday (21/3/2026).

In that meeting, each ministry or agency was asked to begin preparing portions of their budgets that could be reduced. “We have instructed them to prepare, we asked them to prepare how much percentage of their budget will be cut,” he added.