Indonesia may cut defense, police budgets if fiscal pressure mounts, says finance minister

Indonesia's Finance Minister Purbaya Yudhi Sadewa has indicated that the government is considering budget cuts for defense and police if the nation's fiscal health and deficit targets come under strain. Speaking at the Presidential Palace in Jakarta, Sadewa explained that while no concrete discussions have taken place regarding the reallocation of these significant budget items, they remain an option should the deficit be jeopardized.

Despite outlining this possibility, Sadewa emphasized that such a scenario is not imminent. He reassured reporters that the country's finances are currently stable and robust. "But it feels like no, we are still far from that. So we still have enough," he stated, suggesting that immediate austerity measures for these sectors are unlikely in the near future.

The minister's remarks came after a plenary cabinet session at the State Palace in Jakarta. The potential for budget adjustments highlights the government's sensitivity to fiscal pressures and its preparedness to make difficult decisions to maintain economic stability.