UMY Professor Views Proposal to Cut Ministers' Salaries as a Well-Directed Policy

Professor of Economics at Universitas Muhammadiyah Yogyakarta (UMY), Prof. Dr. Imamudin Yuliadi, has responded to the proposal for a 25% cut in ministers’ salaries. He views this step as a well-directed policy amid the increasingly heavy pressure on the state budget deficit.

“A salary cut for officials is one form of policy that has broad implications for society, serving as an example of savings and budget efficiency in the state,” said Imamudin in a written statement on Tuesday (7/4/2026).

For Imamudin, this proposal is not merely about the nominal savings achieved. More than that, a salary cut for officials carries strong symbolic value.

“This shows that efforts towards efficiency are not only imposed on society but start from the government ranks themselves. In a situation where people’s purchasing power is under pressure, such a signal is considered important to maintain public trust in the management of state finances,” added Imamudin.

However, efficiency from salary cuts for officials alone will not suffice to address the actual fiscal pressures. Imamudin firmly rejects the option of increasing foreign debt as a way out of the widening state budget deficit.

The reason is that Indonesia’s foreign debt is denominated in foreign currencies. With the rupiah already weakening to breach Rp 17,000 per US dollar, the value of existing debt automatically swells in rupiah terms. Adding new debt on top of this condition, according to Imamudin, would only worsen the medium-term fiscal burden.

As an alternative, Imamudin encourages the government to optimise the recovery of state assets from corruption practices. In his view, this is a potential that has rarely been included in formal fiscal calculations but is considered significant enough as an emergency solution.

He also supports the savings measures already being implemented by the government, such as cuts to official travel budgets and tighter selectivity in disbursing development funds.

Looking ahead, he predicts that these steps need to be deepened and expanded, including reviewing budget positions for strategic programmes that are deemed not to have direct impacts on society.

“The government will be even stricter in the use of state budgets. In situations like this, significant savings in non-priority sectors are unavoidable steps,” he concluded.

Previously, Finance Minister Purbaya Yudhi Sadewa stated that he would not object if his salary as Finance Minister were cut, even predicting the cut could reach 25%. However, Purbaya also emphasised that the final decision rests entirely with President Prabowo Subianto.