Jakarta, March 19 -- Indonesia's finance minister said Thursday he will set budget cut levels for ministries and agencies under a new efficiency drive aimed at cushioning the economy from escalating Middle East tensions.

Finance Minister Purbaya Yudhi Sadewa told reporters at the presidential palace in Jakarta that a previous plan allowing institutions to decide their own cuts had been dropped over effectiveness concerns.

"I will determine the cut percentages, then each institution will adjust its budget accordingly," he said.

He added the policy would focus on trimming nonessential spending that has limited impact on governance and economic growth.

"It will cover various expense items, such as unnecessary meetings and programs with s...