Bolivian President Cuts Salaries and Cabinet to Quell Protests

President of Bolivia Rodrigo Paz / Dirección de Prensa, Presidencia de Chile

JAKARTA - Bolivian President Rodrigo Paz announced a 50 percent pay cut for himself and all cabinet members amid massive pressure from a national blockade demanding his resignation.

The move is a direct attempt to ease pressure from labor unions and indigenous community organizations that have paralyzed the administrative capital of La Paz.

The announcement came as the Andean country entered the fourth week of protests that have paralyzed activity after dialogue between the government and the leaders of the demonstrators completely failed.

"The president, together with the ministers, has taken a decision - as part of our deep commitment and sacrifice for the country - to reduce our salaries by 50 percent," Paz said in a public speech.

Before the decision, Paz received a monthly salary of 24,978 bolivianos (about 3,617 US dollars/Rp64.7 million). This amount is the maximum limit of public officials' salaries in Bolivia. After the deduction, his salary became 12,489 bolivianos (about 1,808 US dollars or Rp32.3 million).

Paz will take office at the end of 2025 with an agenda to dismantle two decades of left-wing economic policies implemented by his predecessors, Evo Morales and Luis Arce.

In an effort to stabilize state finances, Paz shifted his administration's approach to the United States, international financial institutions, and the private sector, while gradually distancing himself from the trade unions that have a large influence in the country.

Since the beginning of May, indigenous groups, miners, teachers, and factory workers have continued to block roads. The disruption cut off the national supply chain and triggered food, fuel, and medical supply shortages in major cities, as well as paralyzing markets and hospitals.

While demonstrators are demanding the cancellation of austerity measures to curb rising living costs, Paz defends budget cuts and fuel subsidy reductions as necessary steps to stabilize the economy.

The pay cuts were announced just 24 hours after highly anticipated talks between the government and indigenous leaders ended in a failure to reach an agreement.

The Paz government has repeatedly stated that former president Evo Morales was behind the social chaos. The government accused Morales of using trade unions in an attempt to return to power. Morales was previously legally barred from participating in the 2025 election won by Paz.

On Sunday, after peace talks failed, Morales wrote on social media, President Paz only had "two options", namely militarizing the country or holding elections.

"Rodrigo Paz is arranging his own downfall in these streets," Morales wrote on the X social media platform.

The former president is currently a fugitive after an arrest warrant was issued on May 11. Morales was found to have insulted the court for refusing to attend a trial for rape and human trafficking related to allegations that he had a child with a 15-year-old girl while he was president, in exchange for giving political and economic benefits to the victim's parents.