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The government has reassured that the budget cuts will not result in the axing of contract workers or the cancellation of Indonesia Smart Card (KIP) Kuliah program beneficiaries.
he government has reassured that the budget cuts ordered by President Prabowo Subianto will not result in the axing of contract workers or the cancellation of government funded scholarships for the public.
“Regarding employment termination of contract workers of the ministries and government agencies, I hereby state that there will be no contract worker layoffs,” Finance Minister Sri Mulyani Indrawati told the press on Friday before saying that the move requires “further review”.
The minister did not explain what she meant by review, but it may imply that the government would need to tweak the curtailment arrangements it has fixed with lawmakers on Wednesday and Thursday or come up with alternate sources of financing.
Read also: Ministry moves to exclude university KIP from budget efficiency policy
President Prabowo Subianto issued on Jan. 23 a presidential instruction that mandates all ministries and state agencies to identify spending items that could be cut to raise an estimated Rp 306 trillion (US$18.9 billion) to be set aside for priority initiatives, including the free nutritious meals program.
The budget cut deliberation prompted many to protest on social media and #KaburAjaDulu became a trending hashtag on X, which translates to “Let’s just run away”, a call to leave the country and move abroad.
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Among those protesting were government contract workers whom several ministries and agencies had signaled to not extend their employment or who were forced to delay re-procuring their services. One worker went online, claiming her child now receives free meals at school but the mother lost her job due to the budget cut.
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