THE country is eyeing up to 80 trillion rupiah (RM18.5bil) in savings to cushion its economy from the fallout of the Middle East conflict, according to the government.
South-East Asia’s largest economy is also mulling fuel-saving measures, including one day of remote working per week for government workers as US-Israeli strikes on Iran and Teheran’s retaliatory response in the Gulf have sent global oil prices soaring.
In an interview recorded last week, President Prabowo Subianto was asked about a possible shift in budget priorities for the country that heavily subsidises fuel for its population of just over 284 million.
He said the government was “making every effort” to cut costs by curbing energy consumption and boosting production of renewables, mainly solar power.
During the interview, presidential spokesperson Prasetyo Hadi suggested the government is seeking savings of 80 trillion rupiah, a number confirmed to AFP by the presidency yesterday.
Prasetyo did not detail where the money would come from.
The government has repeatedly insisted Prabowo’s signature free meals programme – budgeted at US$19.7bil (RM77.4bil) for 2026 – will remain untouched.
It has also so far staunchly defended its fuel subsidy, which covers about 30 to 40% of the cost for consumers and represents around 15% of the budget.
These form part of Prabowo’s goal to raise the economic growth rate from 5.1% last year to 8% by 2029, fuelled by public spending. — AFP
