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Govt tightens purse strings despite on-track budget

Deni Ghifari (The Jakarta Post)
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Jakarta
Fri, October 9, 2026

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Finance Minister Suahasil Nazara speaks at the APBN Kita press conference on Sept. 19 in Jakarta. Finance Minister Suahasil Nazara speaks at the APBN Kita press conference on Sept. 19 in Jakarta. (Government Communication Agency/- )

T

he Finance Ministry has announced mandatory belt-tightening in government institutions but at the same time insists that budget execution is on course to meet the fiscal plan for this year.

In a press conference about the budget on Friday, Finance Minister Suahasil Nazara used the phrase “on-track” multiple times to describe the budget performance up until the end of September.

Be it the deficit, spending or revenue figures, the minister said the execution so far was “healthy”.

Nevertheless, Suahasil issued an “immediate and confidential” circular dated Oct. 8 to government institutions that bars certain spending items in the fourth quarter, save for anything pertaining to “priority presidential directives”.

The letter instructs all ministries and agencies to shave 30 percent off work trip budgets and to postpone purchases of new motor vehicles as well as the procurement or construction of new official residences or renovation of government buildings and offices.

Deputy Finance Minister Luky Alfirman said on Friday that the letter was intended for “improved spending” in the sense that “we want to ensure that spending is truly in keeping with the priorities we have set”, according to a report by CNBC Indonesia.

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