Seeking Savings, Purbaya Prepares Scenario for Budget Cuts Across All Ministries and Agencies This Week

Jakarta — Finance Minister Purbaya Yudhi Sadewa has stated that the government is preparing an efficiency scenario for state spending by requesting all ministries and agencies to calculate the possibility of budget cuts.

Purbaya indicated that this step is being prepared as a precaution should pressure on the state budget increase, particularly due to rising global oil prices.

“Perhaps within the next week the Ministry of Finance will determine the initial steps for them to begin calculating. But it is not necessarily to be executed,” Purbaya said when met at the Ministry of Economic Coordination on Monday (16 March 2026).

Purbaya explained that the Ministry of Finance will establish the initial step in the near future so that ministries and agencies begin calculating potential budget efficiency.

Purbaya emphasised that this step remains preparatory in nature. The government wishes to have a well-developed plan so it can move quickly if pressure on the state budget increases.

“We have asked them to prepare, roughly what percentage of the budget would be cut. Later they will adjust their policies based on the cuts from the Ministry of Finance,” he said.

Nevertheless, Purbaya assessed that the current budget condition remains sufficiently strong. The government continues to monitor developments in global commodity prices before taking further policy steps.

“The budget seems resilient enough. Unless the increase is very high,” he said.

Purbaya added that rising global oil prices do not always have a negative impact on fiscal matters. As it happens, spikes in oil prices are typically followed by increases in the prices of Indonesian export commodities such as coal and nickel.