TEMPO.CO, Jakarta - Indonesia announced a number of budget-saving policies on Tuesday, March 31, 2026, against the backdrop of escalating conflict in the Middle East that sends the global crude oil prices swinging.
The policies were announced by Coordinating Minister for Economic Affairs, Airlangga Hartarto, along with Minister of Energy and Mineral Resources, Bahlil Lahadalia. "This policy includes eight points of national work culture transformation with additional energy-saving measures," Airlangga said in a press conference on Tuesday, March 31, 2026.
Here are some of the measures taken by the government to save the budget:
Friday Work-From-Home Policy
Government workers in central and regional agencies will be working from home (WFH) every Friday, starting from April 1, 2026. Indonesia also encourages private companies to implement the policy, but some sectors are exempt, including healthcare, security, and hygiene, as well as strategic sectors such as industry, trade, logistics, and finance.
The WFH policy is expected to save fuel compensation worth Rp6.2 trillion in the State budget while the government is looking to save a total of Rp59 trillion in fuel expenses.
Travel Efficiency
The Indonesian government also caps the use of state-sanctioned vehicles by 50 percent, except for operational and electric vehicles. Civil servants are also encouraged to use public transportation. Furthermore, domestic business trips will be reduced by 50 percent and international trips by 70 percent.
Budget Reallocation
The government will refocus the budget earmarked for official trips, meetings, non-operational expenses, and ceremonial activities to more productive expenditure, including disaster rehabilitation and post-disaster reconstruction in Sumatra. According to Airlangga, the potential budget reallocation could reach Rp121.2 trillion to Rp130.2 trillion.
Optimizing Free Nutritious Meal Program
Airlangga mentioned that the government is encouraging the optimization of the free nutritious meal (MBG) program by providing fresh food five days a week. However, this does not apply to dormitories, 3T regions, and areas with high stunting rates. According to Airlangga, the potential savings from this policy could reach Rp20 trillion.
B50 Blend
To support energy efficiency, the government will implement the B50 biodiesel blend policy starting from July 1, 2026. According to Airlangga, the implementation of B50 could reduce the use of fossil-based fuel by 4 million kiloliters. This policy is predicted to save biodiesel subsidies by Rp48 trillion.
Regulating Fuel Purchases
The government will regulate fuel purchases through the My Pertamina barcode. The purchase limit for Pertalite is 50 liters per vehicle. However, this restriction does not apply to public transportation.
Mutia Yuantisya contributed to the writing of this article.
Read: Indonesia Prepares Social Assistance Boost Amid Fuel Price Pressures
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