JAKARTA, March 23 — Indonesia is targeting up to 80 trillion rupiah (about RM18.5 billion) in savings to cushion its economy from the impact of the Middle East conflict.

According to AFP, the government is also considering fuel-saving measures, including introducing one day of remote work per week for government and certain public sector workers.

President Prabowo Subianto said the administration is “making every effort” to reduce costs by cutting energy use and expanding renewable energy, particularly solar power.

The proposed savings figure was suggested by presidential spokesman Prasetyo Hadi and later confirmed by the presidency.

Prasetyo did not specify where the savings would be sourced from.

Indonesia has maintained that its flagship free meals programme, allocated US$19.7 billion for 2026, will not be affected.

The government is also continuing its fuel subsidy policy, which covers around 30 to 40 per cent of consumer costs and accounts for roughly 15 per cent of the national budget.

These measures are part of Prabowo’s broader aim to raise economic growth from 5.1 per cent last year to eight per cent by 2029 through increased public spending.

Unlike some neighbouring countries, Indonesia has not yet experienced long fuel queues despite rising 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 is expected to finalise its work-from-home policy and announce it to the public soon, Prasetyo added. — Reuters