Jakarta. Indonesia on Tuesday announced a sweeping package of austerity measures, including fuel restrictions, sharp cuts to official travel, and a mandatory weekly work-from-home policy, aimed at saving up to Rp 243.4 trillion ($14.3 billion) in state spending.

The policy was unveiled by Coordinating Minister for Economic Affairs Airlangga Hartarto amid a surge in global crude oil prices following military strikes by the United States and Israel on Iran.

“The government has decided to implement a work-from-home policy every Friday for central and regional government employees. In addition, mobility efficiency measures will be enforced, including limiting the use of official vehicles by up to 50%, except for electric vehicles,” Airlangga said during a press conference streamed on the government’s YouTube channel.

Domestic official travel will be reduced by up to 50%, while overseas travel will be cut by 70%, he added.

Exemptions from the WFH policy will apply to public service sectors such as healthcare, security, sanitation, and other “strategic sectors” including industry, energy, water, food and beverages, trade, transportation, logistics, and finance.

The government will also encourage private sector employees to adopt similar work-from-home arrangements, with further guidelines to be issued by the Manpower Ministry.

Airlangga urged the public to adopt energy-saving habits at home and in the workplace, as well as to use public transportation when traveling.

“The potential fuel savings from the WFH policy could reach Rp 6.2 trillion for the state budget, while total fuel consumption by the public could decline by up to Rp 59 trillion,” he said.

The government will also undertake "budget refocusing" by cutting spending on official travel, ceremonial activities, and non-operational expenditures, with projected savings of Rp 130.2 trillion, Airlangga said.

Another key measure includes the rollout of a 50% biodiesel blend (B50) for subsidized diesel, expected to reduce fossil fuel imports and generate savings of around Rp 48 trillion.

Starting April 1, purchases of subsidized fuel will be capped at 50 liters per vehicle per day, with exemptions for public transportation.