TEMPO.CO, Jakarta – Prabowo’s government budget cuts policy has forced a number of state-owned enterprises (SOEs) to terminate the contracts of honorary employees, despite Finance Minister Sri Mulyani’s vow about no layoffs for workers. In several regions across Indonesia, reality paints a contrasting picture.
President Prabowo Subianto instructed a budget efficiency of Rp306.69 trillion in the State Budget and Regional Budget for the 2025 Fiscal Year. The directive is outlined in Presidential Instruction No. 1 of 2025, which obliges ministries and institutions to trim nonessential budgets and prioritize public services.
Despite the government’s pledge to ensure no…