TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa raised the possibility of government defense and police budget cuts should fiscal conditions and the state budget deficit target come under strain. The prospect of savings emerged after President Prabowo Subianto suggested that defense and security spending could be trimmed to eradicate poverty.
Nevertheless, Purbaya emphasized that no formal discussions have taken place to alter current allocations. He noted that spending reductions would be considered only if fiscal pressures and deficit targets escalate down the line.
"Not yet, but given that it is a large budget item, if our deficit [target] is disrupted, we will look there," Purbaya said following a Plenary Cabinet Session at the Presidential Palace complex in Central Jakarta on Monday, July 20, 2026.
Purbaya maintained that the current state budget remains within a safe range. Therefore, immediate spending cuts across both sectors are unnecessary.
"I do not think so. We are still far from it, so funding remains sufficient," said the former chairperson of the Board of Commissioners of the Deposit Insurance Corporation (LPS).
Previously, President Prabowo Subianto signaled potential budget cuts for the Indonesian Armed Forces (TNI) and the National Police (Polri) to combat poverty. Prabowo floated the idea of spending efficiencies within both security institutions during a speech at a military harvest festival in Malang, East Java.
Initially, Prabowo voiced his desire to eradicate hunger and extreme poverty across the country. "We will save on the budget, we will make it efficient; if necessary, we will reduce the defense and police budgets to eliminate poverty," Prabowo said on Friday, July 17, 2026.
In attendance were TNI Commander General Agus Subiyanto, Vice TNI Commander General Tandyo Budi Revita, Army Chief of Staff General Maruli Simanjuntak, Navy Chief of Staff Admiral Muhammad Ali, and Air Force Chief of Staff Marshal Mohammad Tonny Harjono. National Police Chief General Listyo Sigit Prabowo also attended the harvest event.
Prabowo directly polled top military and police leaders on their readiness should their budgets be trimmed. "Is the TNI willing? Is the police force willing? I am asking the TNI, not you—are you willing if the budget is reduced?" Prabowo asked.
In response to the president's remarks, high-ranking military and police officials were seen laughing and nodding in agreement.
Read: Why Did the 2025 Education Budget Fall Below 20%? Purbaya Explains
Click here to get the latest news updates from Tempo on Google News
Fact Check: Is Indonesia's Finance Minister Purbaya Giving Away Rp250 Million Grants?
9 jam lalu
Fact check - The Indonesian Ministry of Finance has confirmed that Purbaya's post announcing the aid from Saudi Arabia is fake.
Why Did the 2025 Education Budget Fall Below 20%? Purbaya Explains
4 hari lalu
Finance Minister Purbaya Yudhi Sadewa explained the challenges faced in realizing the education budget for 2025, which remains below 20% of the total state expenditure.
IKN Seeks Extra Rp2.7tn: How Did Purbaya Respond?
4 hari lalu
The head of the IKN Authority, Basuki Hadimuljono, said that the fresh capital is critical to sustaining the multi-year IKN project through 2028.
Why Finance Minister Purbaya Is Bullish on Rupiah
4 hari lalu
Finance Minister Purbaya Yudhi Sadewa expresses optimism that the rupiah will soon strengthen against the US dollar.
Purbaya Responds as Coalition Challenges Indonesia's Patriot Bond
6 hari lalu
Minister Purbaya ensures that the government will follow the entire legal process and await the Constitutional Court's decision on the judicial review.
Indonesia Secures 10th Consecutive Clean Audit for 2025 Financial Report
6 hari lalu
Indonesian Finance Minister Purbaya Yudhi Sadewa declared that the execution of the 2025 State Budget a success.
Purbaya Acknowledges Early Setbacks in Indonesia's Free Meals Program
6 hari lalu
Indonesian Minister Purbaya acknowledges the challenges faced in the initial stages of implementing the Free Nutritious Meals (MBG) program.
Patriot Bonds Lawsuit: What Does Purbaya Say About It?
6 hari lalu
Finance Minister Purbaya Yudhi Sadewa is preparing legal experts to respond the lawsuit filed against Patriot Bonds.
How Safe Is Indonesia's Debt? Minister Purbaya Responds
7 hari lalu
Minister of Finance Purbaya states that the strategy for future debt management rests upon four pillars.
Minister Purbaya Says Indonesia Will Not Raise Tax Rates
7 hari lalu
Finance Minister Purbaya Yudhi Sadewa said the government will not raise tax rates in the medium term.
