Indonesia Orders 30 Percent Cut in Official Travel Spending

The Ministry of Finance of the Republic of Indonesia ordered all ministries and government agencies to reduce official travel spending by 30 percent for the fourth quarter of 2026. Issued via Circular Letter No. S-708/MK.03/2026 on October 8, the directive mandates the postponement of new vehicle purchases and the construction or renovation of government offices and residences.

Finance Minister Suahasil Nazara stated the measures ensure spending remains focused on the President's priority programs. Director General of Budget Sudarto explained that the policy aims to sharpen spending management to ensure budget allocations deliver measurable results without disrupting public services.

To achieve these reductions, agencies must prioritize online meetings and restrict non-priority travel.