March 14, 2026 | 08:30 am
TEMPO.CO, Jakarta - Indonesian president Prabowo Subianto said his government is considering budget cuts to prepare for a potential economic shock stemming from the war involving the United States and Israel against Iran.
He pointed to several countries that have already introduced austerity measures, including salary reductions for public officials.
Speaking at a cabinet meeting at the Presidential Palace in Jakarta on Friday, March 13, 2026, Prabowo cited Pakistan as an example, saying the country is treating the crisis as it did the Covid-19 pandemic.
“Pakistan has even cut the salaries of cabinet members, members of parliament, and other officials, with all the savings being collected to help the most vulnerable groups,” Prabowo said.
He also noted that Pakistan has implemented work-from-home arrangements for both public and private sector employees. As part of its cost-saving measures, the South Asian country has also reduced working days.
Prabowo added that Pakistan has instructed government agencies to cut the use of official vehicles by up to 60 percent. He said several countries have also suspended overseas travel to reduce spending.
“They have to reduce the use of state funds for events and other activities. Then, all higher education institutions moved online, and all schools were closed for two weeks,” he said.
According to Prabowo, such measures could help reduce fuel consumption at a time when global oil prices and supplies are becoming increasingly volatile due to the conflict in the Middle East. The Gerindra Party chairman said Indonesia may need to adopt similar policies.
Like Pakistan, he said, Indonesia should also consider steps to reduce fuel use. However, he stressed that the government is still reviewing what measures it may eventually take.
“I think we should also pursue savings,” said the former defense minister.
Prabowo said the government would study possible steps in the coming days, adding that Indonesia must be prepared for the worst-case scenario.
“We hope the worst-case scenario does not happen in the Middle East, but many predictions suggest this could become a very long war,” he said.
On Friday, March 13, 2026, Brent crude oil prices climbed back above US$100 per barrel, while West Texas Intermediate (WTI) futures also surged.
Citing data from Trading Economics, Brent crude futures stood at US$101 per barrel at 2 p.m. on March 13, while WTI was recorded at US$97 per barrel.
Brent crude briefly hit a high of US$117 per barrel on March 9. Friday’s level was also above the previous day’s high of US$100 per barrel on Thursday, March 12.
As the US-Israel conflict with Iran intensified, military strikes were reported in several areas, including central Iran and Beirut. Tensions escalated further after the Strait of Hormuz, a key route for global energy trade, was reported to remain effectively closed. The waterway is estimated to handle around one-fifth of global oil shipments.
The disruption of this strategic route has also reportedly forced several oil producers in the Persian Gulf, including Saudi Arabia, to reduce output. The situation has raised concerns over global energy supplies and prompted investors to move into safe-haven assets such as gold.
Read: Prabowo Says He Receives Daily Intel Reports on Dissenting Voices
Click here to get the latest news updates from Tempo on Google News
Prabowo Says He Receives Daily Intel Reports on Dissenting Voices
10 jam lalu
President Prabowo claims to receive regular intelligence reports on critics who are allegedly financed by anti-government entities.
Prabowo Mandates Fuel-Saving Measures Amid Fear of Prolonged Iran War
12 jam lalu
President Prabowo Subianto urges fuel conservation in response to the Middle East conflict.
Prabowo, Ministers Pay Zakat Before Cabinet Meeting
12 jam lalu
After paying zakat, Prabowo and his ministers held a cabinet meeting at the State Palace in Jakarta.
Prabowo Convenes Full Cabinet Meeting for Palace Briefing
20 jam lalu
President Prabowo Subianto is set to convene a full cabinet meeting at the Jakarta Presidential Palace on Friday, March 13, 2026.
Jusuf Kalla: Indonesia Can Leave BoP Without Consequences
1 hari lalu
Former VP Jusuf Kalla said Washington may threaten higher reciprocal tariffs, but noted the U.S. Supreme Court capped them at 15 percent.
Prabowo to Aid Way Kambas Fence Construction to Curb Human-Wildlife Conflict
1 hari lalu
The decision was made to address the recurring conflict between wildlife and humans in Way Kambas.
Prabowo Calls in Energy Minister Over Diesel Power Plant Shutdown
1 hari lalu
Energy Minister Bahlil has not yet provided more details about the locations of the diesel power plants that will be shut down.
Prabowo, DEN Chief Luhut Discuss Impact of US-Israel-Iran War
1 hari lalu
The meeting between Prabowo and Luhut also discussed Indonesia's energy supply situation after the escalation of the conflict.
President Prabowo to Form Task Force for National Park Funding
1 hari lalu
Prabowo's younger brother, Hashim Djojohadikusumo, has been appointed as the head of the task force.
Prabowo Meets Australia's Deputy PM for Strategic Talks
1 hari lalu
Prabowo's personal relationship with Marles is said to be a crucial foundation in strengthening Indonesia's strategic partnership with Australia.
