Prabowo Discusses Cost-Cutting Measures; Pakistan's Approach of Reducing Minister and Parliamentary Salaries Highlighted
President Prabowo Subianto has called for cost-cutting measures alongside rising global uncertainty from conflicts in the Middle East. The President believes that the warming geopolitical conditions globally could impact the economy, requiring all parties to manage expenditure more wisely.
Prabowo conveyed this during a full Cabinet session at the State Palace in Jakarta on Friday, 13 March 2026. He emphasised the need for fuel conservation, which will be a direct consequence of Middle Eastern conflict.
“We face developments occurring globally in Europe and the Middle East, and this certainly has an impact on us because it will affect fuel prices. Fuel prices can also affect food prices,” Prabowo said.
Prabowo stated that the government has already prepared several measures to address the effects of Middle Eastern conflict. However, he requested immediate fuel conservation efforts.
“We are thankful that we have already secured the food issue, the fundamental one. For the fuel matter, we actually already have plans, which we will accelerate. But certainly, we must now take proactive steps. That is, we must reduce fuel consumption,” he said.
The Gerindra Party chairman stressed that the government cannot ensure a safe situation without taking proactive measures.
“We cannot assume that whatever happens, we are safe. Yes, we are grateful we are safe, but we have no efforts to reduce our fuel consumption. Many countries have already taken such steps,” he noted.
Prabowo indicated that several nations have adopted adaptive measures in response to the Western Asia or Middle East conflict situation. He then cited Pakistan as an example, which has also reduced the salaries of cabinet members and parliamentarians.
“Many countries have already taken steps. Perhaps the Cabinet Secretary has slides to present about how many steps. There is Pakistan’s approach. This is merely for comparison,” Prabowo said whilst presenting a graphic on Pakistan’s government crisis measures.
According to Prabowo, Pakistan is currently implementing work-from-home arrangements for both government and private sector offices, with the working week reduced to four days.
“So they consider this critical, hence the term ‘critical measures’. As though for them this is like what we experienced during COVID. They implemented work-from-home for all offices, both government and private, with 50% working from home. Then they cut their working days to just four days,” he explained.
Pakistan has also reduced the salaries of ministers and parliamentarians. The budgetary adjustments are used to help disadvantaged communities.
“They even reduced salaries for cabinet members, for parliamentarians, and all these salary savings are collected to help the most vulnerable or weak groups,” Prabowo said.
Prabowo continued that Pakistan has also cut fuel availability for all ministries and mandated that 60% of government vehicles remain unused at any given time. Pakistan has halted all foreign purchases, vehicle purchases, furniture purchases, and all government institution spending indefinitely.
“They have stopped all foreign visits, reduced and prohibited the use of government funds for festive events. Then all higher education institutions have moved to online. All schools have closed for two weeks, perhaps in preparation for Eid al-Fitr,” he said.
Prabowo stated that Pakistan’s government approach serves as an example in addressing crisis situations. He requested that such measures be reviewed in efforts to achieve cost savings.
“This is merely an example. My point is, there are several days for this, I believe we can examine this matter, I believe we must also endeavour to implement cost-cutting. I believe that in 2-3 years we will be very strong, but we must still conserve consumption. In doing so, we hope to ensure that our deficit does not increase further,” he concluded.