Regional Leaders from PDIP Urged to Economise Amid US-Iran Conflict
The Central Leadership Council of the Indonesian Democratic Party of Struggle (PDIP) has urged regional heads and leaders of provincial representative councils (DPRDs) from the PDIP to economise on regional spending budgets. This appeal aims to anticipate the impacts of the conflict between the United States and Israel against Iran.
The appeal was conveyed through a letter signed by Darmadi Duranto, head of the PDIP Central Leadership Council for industry, trade, state-owned enterprises and investment, and Hasto Kristiyanto, secretary-general of PDIP, on 5 March 2026. Hasto confirmed the letter’s authenticity, stating it resulted from an expanded PDIP central leadership meeting that included regional heads, deputy regional heads, and DPRD leaders.
“In the meeting, the PDIP central leadership explained its position to assist the public from various global pressures stemming from the attack by the United States and Israel against Iran,” said Hasto on Monday, 9 March 2026.
In the letter, the PDIP central leadership warned that the conflict between the US-Israel alliance and Iran would trigger a rise in global oil prices and impact the public economy. The increase in global crude oil prices would lead to higher distribution costs and food prices, as well as inflation.
“Each one-dollar increase in global crude oil prices has the potential to add approximately 7 trillion rupiah to Indonesia’s oil subsidy burden,” the letter, numbered 963/IN/DPP/III/2026, stated.
The PDIP central leadership letter contained five key directives for regional heads and DPRD members from PDIP. First, DPRD leaders are asked to strengthen oversight of regional revenue and expenditure budget implementation in an effective, constructive, and accountable manner in accordance with legal provisions.
Second, PDIP has requested regional heads and DPRDs to calculate and analyse the fiscal impact on regional budgets, including the potential increase in subsidy expenditure, operational spending, and public service delivery costs.
Third, PDIP has directed its cadres serving as regional heads to cut and economise on budgets by reducing costs and improving efficiency, prioritising expenditure that directly benefits the public and postponing non-urgent activities.
Fourth, PDIP has asked its cadres to anticipate rising food prices and distribution costs by ensuring stable supply and affordable prices in their respective regions.
Fifth, PDIP has requested its cadres to strengthen social safety net programmes for the poor, workers, farmers, fishers, micro, small and medium enterprise owners, and other vulnerable groups.
In closing, PDIP emphasised that these directives must be implemented with responsibility and discipline, whilst prioritising the interests of ordinary citizens as a realisation of the party’s ideology.