Government studies cost-saving measures as Middle East conflict pressures energy resources
Indonesia is reviewing potential salary cuts for cabinet ministers and lawmakers as part of broader cost-saving measures in response to energy supply concerns linked to the ongoing Middle East conflict.
Government Studies Salary Reduction Plan
State Secretary Minister Prasetyo Hadi confirmed that the government is conducting a detailed study on reducing salaries for members of the Red and White Cabinet and the House of Representatives.
The proposal is part of ongoing efforts to improve fiscal efficiency amid global uncertainties affecting energy supply.
Oil Supply Concerns Drive Policy Review
The move comes as Indonesia faces pressure from a declining oil supply linked to the Middle East conflict.
However, officials stressed that the country’s oil reserves remain stable, with a targeted supply buffer of around 25 days.
Not a Crisis, But a Warning Signal
Authorities emphasised that the situation is not yet critical, but serves as an early warning for the government to act prudently.
The oil reserve system is designed to be continuously replenished, ensuring no immediate shortage.
Push for Energy Efficiency Measures
Beyond salary cuts, the government is exploring ways to reduce fuel consumption, including encouraging greater use of public transportation.
Officials say such measures could help manage long-term energy demand more sustainably.
Lessons from Other Countries
President Prabowo Subianto pointed to countries like Pakistan, which have implemented drastic measures such as reducing working days and cutting officials’ salaries during economic stress.
He stressed the importance of preparedness, even before a full-blown crisis emerges.
As global energy uncertainty persists, Indonesia is weighing difficult but preventive measures to safeguard its fiscal stability, with salary cuts emerging as one of several options under consideration.
Sources: EN Tempo (2026) , EN Tempo 2 (2026)
Keywords: Indonesia Minister Salary Cut, DPR Salary Reduction Plan, Oil Supply Indonesia Policy, Prabowo Budget Measures, Indonesia Energy Crisis Response
