March 17, 2026 | 08:44 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa has responded to President Prabowo Subianto's recently announced plan to slash ministerial salaries in the face of global economic uncertainty.
"It is fine for ministerial salaries to be cut; they have been too large anyway," Purbaya remarked during a visit to Yogyakarta on Tuesday, March 17, 2026.
Last week, during a cabinet meeting in Jakarta, President Prabowo cited cost-saving measures taken by the Pakistani government, which included cutting the salaries of everyone from parliamentary officials to ministers.
The move is being explored as a proactive effort to prevent the state budget deficit from widening due to the global volatility sparked by the conflict in the Middle East.
Purbaya voiced his support for the initiative, assessing that the current income of presidential aides is indeed reaching a high figure.
While welcoming the austerity plan, Purbaya emphasized that the fundamental condition of the national economy remains on a positive trajectory, suggesting that the public does not need to worry.
Purbaya also dismissed various opinions and speculations suggesting that Indonesia's economy is currently in a downturn.
According to the Finance Minister, Indonesia's overall economic activity still demonstrates strong vitality across multiple sectors, and he questioned the sources of those claiming the economy is struggling.
"The economy is still good; everything is going well, and all sectors are expanding," Purbaya asserted.
Regarding fiscal policy, Purbaya clarified that the Ministry of Finance has not yet made a formal decision to cut budgets across various ministries or agencies.
He noted that the government is still in the stage of performing in-depth calculations while monitoring the dynamic fluctuations of world oil prices caused by the conflict in the Strait of Hormuz.
He also confirmed that no official decision regarding imminent budget cuts has been finalized.
President Prabowo had previously highlighted how other nations are tightening their belts by cutting the salaries of cabinet members and parliamentarians to provide aid to the most vulnerable groups in society.
In addition to salary cuts, other cost-saving measures currently under government consideration include work-from-home (WFH) mandates, fuel savings, and the suspension of non-essential state spending.
Read: Indonesia Weighs Ministerial Salary Cuts to Boost Savings
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