The biggest worry of today is that State revenues for 2016 will fall far below the target. This worry had forced the Government to take extraordinary measures, one of which is reducing state expenditure. This austerity measures was ratified by President Joko “Jokowi” Widodo with the issuance of Presidential Instruction (Inpres) No. 8/2016 aimed at reducing the budget of 83 ministries and state institutions. Some have criticized the austerity policy, but the most interesting criticism is on the choice to issue the instruction with a presidential instruction paper. Critics believe that issuing an inpres to modify the budget, which is affixed by law, is unconstitutional. Is this a correct assessment?To subscribe please click here