March 17, 2026 | 08:07 pm
TEMPO.CO, Jakarta - Indonesian State Secretary Minister Prasetyo Hadi revealed that the government is currently conducting a detailed study on cutting the salaries of Red and White Cabinet members and the House of Representatives. The proposed cuts follow a dwindling oil supply triggered by the ongoing conflict in the Middle East.
"We are detailing the study," Prasetyo stated at the Ministry of Defense office in Central Jakarta on Tuesday, March 17, 2026.
Despite the proposal, the presidential spokesperson claimed that Indonesia's current oil supply remains secure. The government is striving to maintain a 25-day supply in accordance with national standards that adjust for storage capacities.
"Although that does not mean the oil will run out after that period. It is a storage mechanism; once it is empty, it will be replenished," he explained.
Prasetyo added that the current situation serves as a vital lesson in budget efficiency. He noted various efforts the government can take to reduce oil consumption, such as encouraging a migration toward public transportation.
During a Plenary Cabinet Meeting at the State Palace on Friday, March 13, 2026, President Prabowo Subianto emphasized the importance of cost-cutting, even though the situation has not yet reached a full-blown crisis. Prabowo cited Pakistan, which has implemented extreme critical measures to manage its own economy. Their steps included reducing working days and slashing officials' salaries.
"This is Pakistan's measure, provided just for comparison. They consider their situation critical, so they adopted 'critical measures,' much like what we faced during the Covid-19 pandemic," Prabowo remarked.
Read: Prabowo Rules Out MBG Funding Cuts Amid Budget Savings Plan
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