The government of Indonesia is targeting savings of up to 80 trillion rupiah (approximately $4.7 billion) to protect its economy from the ripple effects of the ongoing Middle East conflict.

Officials say the country is also weighing energy-saving measures, including introducing a one-day-per-week remote work policy for government employees and some public-sector workers. The move comes as rising tensions involving the United States, Israel, and Iran continue to drive global oil prices higher.

President Prabowo Subianto stated that his administration is working to reduce costs by limiting energy consumption and expanding renewable energy sources, particularly solar power.

A presidential spokesperson, Prasetyo Hadi, confirmed the proposed savings figure, though details on how the funds would be sourced were not disclosed.

Despite the planned cost-cutting, the government has maintained that its flagship free meals programme—valued at $19.7 billion for 2026—will remain unchanged. Authorities have also defended the country’s fuel subsidy system, which covers roughly 30 to 40 percent of fuel costs for consumers and accounts for about 15 percent of the national budget.

These policies are part of broader efforts to accelerate economic growth from 5.1 percent last year to a projected eight percent by 2029, largely driven by public spending.

Unlike some neighbouring countries, Indonesia has so far avoided severe fuel shortages despite rising global prices. However, officials say additional measures are being considered, with the proposed remote work policy expected to be finalised and announced soon.