Purbaya on Minister Salary Cuts: No Problem
Finance Minister Purbaya Yudhi Sadewa has responded to plans to cut ministerial salaries recently announced by President Prabowo Subianto in response to global economic uncertainty.
“Yes, it’s fine if ministerial salaries are cut; they’re already too high,” said Purbaya during his visit to Yogyakarta on Tuesday, 17 March 2026.
President Prabowo had touched upon cost-saving measures during a cabinet meeting in Jakarta the previous week, citing Pakistan’s example of cutting salaries for parliamentary and ministerial officials.
This approach is intended to anticipate the widening of the state budget deficit due to global uncertainty resulting from the Middle East conflict.
Purbaya expressed his support and assessed that the current income levels of the President’s aides are indeed already at high levels.
Whilst welcoming the austerity plan, Purbaya emphasised that the nation’s fundamental economic conditions are actually on a positive trajectory, so the public need not be concerned.
Purbaya also dismissed various views, information and speculation suggesting that Indonesia’s economy is in decline.
According to Purbaya, Indonesia’s economic activity in general still demonstrates strong momentum across various sectors. He also questioned the sources of claims that the economy is performing poorly.
“So the economy is still good, everything (sectors) is running at full speed, expansion all around,” said Purbaya.
Regarding fiscal policy, Purbaya explained that the Ministry of Finance has not yet made a final decision to cut budgets at ministerial or institutional positions.
According to him, the government is still in the process of conducting thorough calculations whilst monitoring the highly dynamic fluctuations in global oil prices resulting from the conflict in the Strait of Hormuz, Iran.
He assured that there have been no formal decisions regarding budget cuts in the near term.
President Prabowo had previously noted the steps taken by other countries to tighten their belts by cutting cabinet and parliament member salaries to help the most vulnerable groups in society.
Besides salary cuts, other austerity schemes being considered by the government also include implementing work-from-home arrangements, fuel savings, and halting government spending deemed non-essential.