Indonesia's Ministry of Finance orders 30% cut to official travel budgets

The Indonesian Ministry of Finance has instructed all ministries and agencies to cut unspent official travel budgets by up to 30 percent. This directive, signed by Finance Minister Suahasil Nazara on October 8, 2026, targets remaining budget allocations as the country enters the fourth quarter.

To achieve these savings, agencies are encouraged to optimize online meetings, limit non-priority travel, and reduce the frequency of official trips. Director General of Budget Sudarto stated that the policy aims to ensure state spending is more effective and result-oriented, ensuring every rupiah provides optimal benefits.

In addition to travel expenses, the Ministry has ordered a postponement of non-essential apparatus support spending. This includes the procurement of new motor vehicles, the construction or acquisition of new official residences, and the renovation or rehabilitation of office buildings. These savings will be implemented through an ‘automatic adjustment’ mechanism by applying code 9 to the Budget Implementation List (DIPA). Sudarto emphasized that these efficiency measures must not disrupt the implementation of priority programs or public-impact development targets.