Indonesia Palace Confirms Possible Cuts to Defense and Police Budgets for Poverty Reduction

The Indonesian Presidential Palace has confirmed that cuts to the defense and police budgets remain a possibility as President Prabowo Subianto considers reallocating funds to eliminate poverty. State Secretary Minister Prasetyo Hadi stated that while Indonesia’s fiscal condition is stable, adjustments could be made if necessary. “The possibility remains there, meaning if it is required under certain circumstances, it can be implemented,” Prasetyo told reporters at the Presidential Palace complex in Jakarta on Tuesday.

President Prabowo first raised the issue during a TNI harvest event in Malang, East Java, on Friday, July 17, 2026. He asked senior military and police leaders directly whether they would accept budget reductions. “We will save the budget, make it more efficient. If necessary, we will reduce the defense and police budgets to eliminate poverty,” Prabowo said. The attending officials, including TNI Commander General Agus Subiyanto and National Police Chief General Listyo Sigit Prabowo, responded by nodding and laughing.

The government continues to follow Prabowo’s directive to review state spending, particularly expenditures considered less productive or limited in impact. Prasetyo did not specify which sectors would face cuts. This potential shift in budget priorities marks a significant policy direction under the Prabowo administration, balancing national security with social welfare goals.

Article and image source: en.tempo.co