Indonesia plans to save up to US$4.7bil to protect its economy from Middle East war impacts, considering fuel-saving measures like remote work.
JAKARTA: Indonesia is eyeing savings of up to 80 trillion rupiah (US$4.7 billion) to cushion its economy from the fallout of the Middle East conflict. The government is considering fuel-saving measures, including one mandatory remote working day per week for government and certain public sector employees.
The move comes as US-Israeli strikes on Iran and Tehran’s retaliatory actions have sent global oil prices soaring. In a recent interview, President Prabowo Subianto (pic) said the government was “making every effort” to cut costs by curbing energy consumption and boosting renewable production, mainly solar power.
Presidential spokesman Prasetyo Hadi confirmed the 80 trillion rupiah savings target to AFP. He did not specify where the money would be sourced from, but the government has insisted Prabowo’s signature free meals program, budgeted at US$19.7 billion for 2026, will remain untouched.
The administration has also staunchly defended its fuel subsidy, which covers 30% to 40% of consumer costs and represents about 15% of the national budget. These expenditures are part of Prabowo’s goal to raise economic growth from 5.1% last year to 8% by 2029, fuelled by public spending.
Unlike many neighbours, Southeast Asia’s largest economy has not yet seen long fuel queues despite soaring global oil prices. “There are still many other cost saving measures that we can implement,” Prabowo said in an interview aired over the weekend.
The government will finalise its work-from-home policy and announce it to the public “as soon as possible,” Prasetyo said.
