Regarding the Percentage of Ministry Budget Cuts, Purbaya Gives a Hint

Jakarta, VIVA – The Finance Minister, Purbaya Yudhi Sadewa, will directly set the percentage of budget cuts for ministry/institutional spending (K/L) as a step towards efficient use of the state budget amid rising global economic uncertainties due to geopolitical tensions in the Middle East.

“I initially asked the ministries to cut their own budgets, but if told to do so, they don’t want to cut; instead, they increase everything. If possible, I’ll determine how much percentage to cut, and then they can adjust accordingly,” said Purbaya at the Presidential Palace Complex, Jakarta, on Thursday, 19 March 2026.

He explained that the Ministry of Finance will review spending components deemed postponable for the time being. The efficiency focus targets programmes that do not provide significant impact or have slow acceleration towards national economic growth.

According to him, this policy covers various aspects of operational spending, including non-urgent internal activities.

“Various kinds. Unclear meetings, or policies whose impact is slow or not much on economic growth, we can postpone,” he stated.

In addition to efficiency at the programme level, discussions on cutting ministers’ and deputy ministers’ salaries have emerged as part of state budget savings. Purbaya expressed his support for the proposal as a concrete step of solidarity by state officials in budget savings.

“Agree. Oh, that’s good. If that’s good,” he said.

For information, President Prabowo Subianto held a limited meeting with Coordinating Minister for Economic Affairs Airlangga Hartarto, Finance Minister Purbaya Yudhi Sadewa, and Minister of Investment and Downstreaming Rosan Roeslani.

Previously, Airlangga mentioned that inter-ministerial coordination has been conducted to formulate the technical steps for these savings.

Airlangga added that the government is currently examining various new operational schemes to support routine cost savings. One option being calculated is the implementation of a work-from-anywhere (WFA) system for civil servants in ministries and institutions.