Indonesia considers slashing gov’t officials’ pay in bold response to Iran war fallout
While its neighbours are cutting mall hours and shortening in-person workweeks, Indonesia is ready to take it up a notch: it may cut the salaries of top public officials as part of sweeping austerity measures linked to the economic fallout from the Middle East conflict.
President Prabowo Subianto floated the proposal during a plenary cabinet session on March 13, warning that volatility in global energy markets — triggered by the ongoing United States-Israeli war on Iran — requires pre-emptive action from Southeast Asia’s largest economy.
Prabowo pointed to Pakistan’s response to similar pressures, including pay cuts for officials, remote working arrangements and delays to non-essential spending, as a model for Indonesia.
The proposal has since drawn support from several parties within the governing coalition. The Golkar Party, which holds a significant share of cabinet posts, said it was prepared to comply.
“If the country requires it, Golkar is ready for its members serving in the cabinet and the legislature to have their salaries cut,” secretary-general Muhammad Sarmuji said, describing the move as a signal of the government’s “willingness to adapt.”
The National Mandate Party (PAN) also backed the plan. Deputy chair Eddy Soeparno said the party would “stand at the forefront” of efforts to ensure public acceptance if the policy is implemented.
Even the opposition Indonesian Democratic Party of Struggle (PDI-P) has not objected, though it stressed that any cuts should begin at the highest levels of government. Lawmaker Andreas Hugo Pareira said savings “should start with the top, from the President and Vice President down.”
Several cabinet members have echoed that stance. Human Rights Minister Natalius Pigai said he would accept a pay cut “even if I don’t receive a salary… for the greater good,” while Finance Minister Purbaya Yudhi Sadewa confirmed the government was reviewing the proposal’s details.
This story is written and edited by the Global South World team, you can contact us here.
