Symbolic Efficiency Measures Deemed Insufficient
The government’s discourse on savings through salary cuts for officials and the implementation of work from home (WFH) is deemed not to touch the main fiscal issues of the state. Political analyst from the Citra Institute, Efriza, states that such policies are more symbolic than real solutions.
“Savings through salary cuts for officials and the discourse on WFH one day a week are not structural solutions,” he said in a written statement on Monday (23/3).
He assesses that these steps tend to merely build an image of elite empathy towards the state’s financial condition, without significant impact on the overall budget.
According to Efriza, the effectiveness of savings should be directed towards sectors with large budget burdens, such as bureaucratic spending, non-priority projects, and budget leakages.
He also views WFH as only suitable as an additional option, not a main priority in efficiency policies. “WFH one day is merely an additional option, not a priority; indeed, WFH can reduce operational costs and increase work flexibility, but the risks are significant if implemented for too long, potentially lowering bureaucratic performance, especially if not accompanied by clear supervision and evaluation systems,” explained Efriza.
On the other hand, he mentions cabinet streamlining as a more impactful step, though laden with political risks. “It is more appropriate to streamline the cabinet, or opt for the dissolution and/or merger of state institutions deemed no longer sufficiently productive. This is more substantial than salary cuts for officials,” he added.
The bloated cabinet structure, in his view, not only burdens the budget but also slows government coordination. However, this option is deemed difficult for President Prabowo Subianto to take due to its close ties to political stability and relations with supporting parties.
“It cannot be denied that the political reality in Indonesia shapes the cabinet often becoming an instrument of coalition accommodation as well as volunteers, so streamlining is not just a technocratic matter, but also concerns political stability,” stated Efriza.
He assesses that, although effective in governance, cabinet streamlining requires great political courage and risks disrupting parliamentary support.
Therefore, he urges the government to focus on steps with broader and more sustainable impact. “If the goal is truly savings with real impact, then the steps must target the ‘big pockets’ of the budget, not just symbolic policies,” said Efriza.
He emphasises the importance of a combination of policies, from cutting non-priority spending, strengthening bureaucratic reforms, to tightening supervision of budget leakages. According to him, without comprehensive steps, efficiency policies risk stopping as mere discourse without real impact on the state’s financial condition.
Member of Commission II of the Indonesian House of Representatives, Ali Ahmad, responds to the discourse on salary cuts for state officials up to ministers being studied by the government as a savings measure.
The discourse on salary cuts for officials conveyed by President Prabowo Subianto is deemed logical as a step to save the state budget.
Based on calculations, the savings impact from this policy is very small compared to the total state budget.
The discourse on salary cuts for state officials is not just about numbers or savings, but a political statement that can truly become symbolic politics or moral authority.
Chairman of PP Muhammadiyah, Anwar Abbas, comments on President Prabowo Subianto’s plan to cut salaries for officials, especially ministers and members of the House of Representatives.
The President explained the need for efficiency by looking at Indonesia’s ICOR score, which tends to be higher compared to neighbouring countries.
The House of Representatives carries out budget efficiency of up to Rp1.3 trillion. Several positions underwent savings. Even for salaries of council members up to employees.
Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, revealed that the planned budget efficiency in three rounds will affect all lines of government.
Iwan also highlighted Prabowo’s statement mentioning ‘little kings’ who oppose budget efficiency policies.
Prabowo revealed that currently there are a handful of parties who do not want this policy to happen. However, Prabowo ignores it and remains steadfast.