Snacks such as cassava, steamed corn and yam cakes should be served at official gatherings and the number of guests invited to high-ranking bureaucrats' parties should be limited to 400, a minister said.
President Joko Widodo, who took office last month and is known as a modest figure from a humble background, has made reining in official spending and trimming back the graft-ridden nation's bloated democracy a key goal.
Announcing the latest moves late yesterday, Yuddy Chrisnandi, minister for bureaucratic reform, ordered officials to "stop anything that is excessive".
He said that gluttonous officials were at risk of developing high cholesterol and high blood pressure, and that buying local snacks would help Indonesian farmers.
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Chrisnandi said that the rules on food would be applied in all ministries and government offices from December 1. Those who broke them would face sanctions such as demotion or a postponement of bonus payments, he added.
The ban on lavish parties, due to come into effect early next year, is aimed at private functions held by high-ranking officials, which are often vast affairs at luxurious hotels.
Chrisnandi said such events "created an impression of inequality".
"There are high-ranking government officials organising weddings for their children... Inviting thousands, causing traffic jams."
The moves echo an anti-corruption crackdown launched by China's leader Xi Jinping after he came to power in late 2012, which included banning fancy fare from official banquets.