Indonesia Mulls Minister Pay Cuts As Fiscal Tightening Plans Emerge

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Indonesia is weighing a proposal to reduce ministers’ salaries as part of broader fiscal tightening measures, with the matter expected to be discussed at an upcoming Cabinet-level meeting.

According to reports by the national news agency Antara, Cabinet Secretary Teddy Indra Wijaya confirmed that the proposal remains under discussion and no final decision has been reached at this stage. He stressed that the matter is still preliminary and requires further deliberation.

“There has been no decision made regarding the proposal,” he said on Tuesday, adding that the idea did not originate from his office. The development reflects ongoing conversations within the government as it explores ways to strengthen fiscal discipline.

The issue gained traction following remarks by Finance Minister Purbaya Yudhi Sadewa, who previously indicated he would not oppose such a move. However, he emphasised that any decision ultimately rests with President Prabowo Subianto.

Purbaya had also floated the possibility of a salary reduction of around 25 per cent, although no official figure has been confirmed. His comments were made in the context of wider efforts to improve budget efficiency, including potential spending cuts across ministries and government agencies.

The discussion highlights the government’s ongoing push to manage public finances more effectively, as policymakers continue to explore measures aimed at ensuring long-term fiscal sustainability.

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