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RI Govt to set budget cuts to offset Mideast risks

Jakarta (ANTARA) – Indonesia’s finance minister said Thursday he will set budget cut levels for ministries and agencies under a new efficiency drive aimed at cushioning the economy from escalating Middle East tensions.Finance Minister Purbaya Yudhi Sadewa told reporters at the presidential palace in Jakarta that a previous plan allowing institutions to decide their own cuts had been dropped over effectiveness concerns.“I will determine the cut percentages, then each institution will adjust its budget accordingly,” he said.He added the policy would focus on trimming nonessential spending that has limited impact on governance and economic growth.“It will cover various expense items, such as unnecessary meetings and programs with slow or minimal economic impact, which can be set aside,” he said.Beyond programs and activities, the government is also considering salary cuts for ministers and deputy ministers as part of the efficiency push.Purbaya said he supported the proposal, describing it as a direct contribution by officials to state finances.“I support that good idea,” he said.Purbaya made the remarks after attending a limited cabinet meeting chaired by President Prabowo Subianto, alongside Coordinating Minister for Economic Affairs Airlangga Hartarto and Investment Minister Rosan Roeslani.The government has stepped up coordination across ministries to formulate technical measures for implementing the budget efficiency plan, Hartarto said separately.He added that discussions are ongoing on new operational schemes that could support routine spending cuts across government institutions.Among the options being explored is a work-from-anywhere arrangement for civil servants in ministries and state agencies, aimed at reducing operational costs while maintaining productivity.Officials say the efficiency drive is part of broader efforts to safeguard fiscal stability and maintain economic resilience amid global uncertainty, particularly risks stemming from geopolitical tensions in the Middle East that could disrupt energy markets and trade flows.