PDIP Instructs Regional Heads and Legislators to Cut Spending Amid Iran War Impact
The Central Leadership Council (DPP) of the Indonesian Democratic Party of Struggle (PDIP) has issued an instruction letter to its cadres in regional government and legislative positions to implement budget cuts as a precautionary measure against rising global oil prices resulting from the conflict between Iran and the United States-Israel.
The letter was signed by PDIP Secretary-General Hasto Kristiyanto on Thursday, 5 March, regarding instructions to anticipate the impact of rising global oil prices.
Through this letter, PDIP calculated that a USD 1 increase in global crude oil prices could potentially add approximately Rp7 trillion to Indonesia’s national fuel subsidy burden.
“This has implications for increased fuel prices, rising goods distribution costs, food prices, and triggering inflation that burdens the lives of ordinary people,” the letter stated.
PDIP issued five instructions in the letter directed at its cadres in regional government and legislative leadership positions, including implementing budget cuts and efficiency measures.
“Implementing budget savings and efficiency with priority given to spending that directly benefits the people, as well as deferring non-urgent activities,” stated the third point of the instructions.
Secondly, PDIP also requested regional heads and legislative leaders to calculate the impact of rising global oil prices on regional budget fiscal implications.
Thirdly, PDIP requested the regional legislatures strengthen oversight functions over regional budget implementation in a constructive and effective manner. Fourthly, PDIP requested its cadres anticipate rising food prices and distribution costs, and ensure stable supply and prices in their respective regions.
Fifthly, PDIP requested its cadres in the executive and legislative branches strengthen social safety net programmes for low-income communities, labourers, farmers, fishermen, micro and small business operators, and other vulnerable groups.
“This instruction is hereby communicated for implementation with full responsibility, discipline, and commitment to the ordinary people.”