Indonesia seeks $5bn savings as Iran war strains budget
Indonesia is aiming to secure significant budget savings as it prepares for the economic impact of the conflict involving the United States, Israel and Iran.
Presidential spokesperson Prasetyo Hadi said the government is targeting savings of around 80 trillion rupiah, equivalent to about $5bn, to help stabilise public finances, News.az reports, citing Xinhua.
In a video interview published on Saturday, President Prabowo Subianto said the country was working intensively to improve budget efficiency in response to the global uncertainty triggered by the conflict.
The war has contributed to rising energy prices and wider economic pressures, affecting countries far beyond the Middle East. For Indonesia, a major emerging economy in Southeast Asia, the challenge lies in managing fiscal stability while maintaining growth.
Officials say efforts are focused on cutting unnecessary spending and reallocating resources to priority areas, as the government seeks to cushion the domestic economy from external shocks.
Indonesia’s move reflects broader concerns among developing economies about the ripple effects of geopolitical tensions on energy costs, trade flows and inflation.
Authorities have not detailed specific sectors that will face cuts, but emphasised that maintaining economic resilience remains a top priority as global conditions remain uncertain.
News.Az
By Faig Mahmudov
