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View all search resultsPresident Prabowo Subianto first raised the proposal as part of a wider austerity measure to mitigate potential impacts from the crisis triggered by the United States-Israeli war against Iran.
everal political parties in the governing coalition and cabinet members have voiced support for a proposal to cut executive and legislative officials’ salaries as part of broader austerity measures to mitigate the economic impact of the ongoing United States-Israeli war on Iran.
President Prabowo Subianto floated the pay cut idea in his speech at a plenary cabinet session on March 13, one week before the Idul Fitri holiday, in which he stressed the need for Indonesia to take proactive measures to mitigate growing uncertainty in global energy markets, triggered by the war in the Middle East.
He cited austerity measures adopted by Pakistan in response to the crisis as an example, including salary cuts for officials, remote working policies for both the public and private sectors and delaying non-essential state spending.
The proposal has received some support from parties within Prabowo’s ruling coalition, such as the Golkar Party, which holds the largest number of cabinet portfolios among those allocated to political parties. The party also commands the second-largest bloc of seats in the House of Representatives.
“If the country requires it, Golkar is ready for its members serving in the cabinet and the legislature to have their salaries cut,” Golkar secretary-general Muhammad Sarmuji said on Tuesday.
Read also: Self-reliance ‘common sense’, Prabowo says, as war tests global order
The pay cut, he added, would signal the country’s responsiveness to the situation and “our willingness to adapt”. Sarmuji also suggested the government review less effective programs and improve budget efficiency to ensure meaningful savings, but stopped short of specifying which programs.
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