Prabowo's Strategies to Counter Middle East War Impact: From Taxes to WFH!
Jakarta, CNBC Indonesia—President Prabowo Subianto gathered several ministers on Thursday (19/3/2026) to discuss global dynamics, including the rise in energy and commodity prices. A series of policies were issued as a form of anticipation to avoid pressuring the public.
Coordinating Minister for the Economy, Airlangga Hartarto, stated after the meeting that the policies are directed to keep the state budget deficit below 3% of GDP.
“We are maintaining the state budget so that the deficit remains below 3 percent and in line with the directives from the Full Cabinet Plenary Session, which has been coordinated with technical ministries. This is achieved through efficiencies across various ministries and agencies. With these efficiencies, the 3 percent deficit can be maintained,” said Airlangga.
One of the efforts to be undertaken is increasing coal production volume through adjustments to the Work Plan and Budget (RKAB). The government is reviewing policy adjustments related to coal export taxes to boost state revenues, in line with the upward trend in commodity prices.
In the energy sector, the government is pushing for the acceleration of converting diesel power plants (PLTD) to solar power plants (PLTS) as an efficiency measure amid high oil prices. This mandate has been assigned to the Danantara Investment Management Agency for immediate follow-up.
The government is also reviewing flexible work policies through a one-day Work From Home (WFH) scheme in every five workdays.
“There are savings in terms of mobility usage; the fuel savings are quite significant, one-fifth of what we usually spend,” explained Airlangga.
The government is currently refining the technical aspects of implementing this policy. The WFH implementation is expected not only to apply to Civil Servants (ASN) but also to be adopted by the private sector and regional governments.
The planned implementation of this policy is scheduled to begin after Eid al-Fitr 2026. However, the exact timing will be determined further.
“We’ll see the situation. The oil price situation, the war situation. We’ll follow the developing circumstances,” he concluded.
From all the policies, the government is not opting for fuel price increases. These various steps reflect the government’s adaptive and measured response in maintaining economic stability, while strengthening the direction towards energy independence and national resilience.