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Speech Transcript


  • 16 August 2017
  • 227 Views

ADDRESS OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA ON THE PRESENTATION OF THE GOVERNMENT STATEMENT ON THE BILL ON THE STATE BUDGET FOR THE 2018 FISCAL YEAR AND ITS FINANCIAL NOTE BEFORE THE PLENARY SESSION OF THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA

Bismillahirrahmanirrahim,

Assalamualaikum Warahmatullahi Wabarakatuh,

May we be bestowed with peace and prosperity,

Om Swastiastu,

Namo Buddhaya.

May we be bestowed with Virtue,

Honourable Speaker, Vice-Speakers, and Members of the

House of Representatives of the Republic of Indonesia;

Honourable Speaker, Vice-Speakers, and Members of the Regional Representatives Council of the Republic of Indonesia;

Distinguished Heads, Vice-Heads, and Members of State Institutions;

My fellow countrymen,

Distinguished Ladies and Gentlemen,

It is imbued with our profound gratitude to God the Almighty that, this afternoon, we are able to attend the Plenary Session of the House of Representatives of the Republic of Indonesia, on the occasion of the presentation of the Government Statement on the Bill on the State Budget for the 2018 Fiscal Year and its Financial Note.

The presentation of the Government Statement on the 2018 Bill on the State Budget is made at a particularly auspicious moment for all of us, as we approach the commemoration of the seconds leading up to the 72nd Anniversary of the Proclamation of Independence of the Unitary State of the Republic of Indonesia. This moment reminds us all of the promises of freedom that we must fulfill, that we must accomplish, that we must deliver. This is a moment that reminds us all that the Proclamation of Independence is the gateway towards realizing an Indonesia that is independent, united, sovereign, just and prosperous. This is a moment that reminds us all that the promises of independence can only be achieved if we work collectively, work collectively, work collectively.

The drawing up of the 2018 Bill on the State Budget is a concrete manifestation of the collective work between the Government, the House of Representatives, and the Regional Representatives Council. In the process of preliminary deliberations with the House and the Council held recently, the Government has received constructive inputs from the Honourable Members of the House. With these inputs, the Government is able to draw up the 2018 Bill on the State Budget, and is able to present it to the Plenary Session of the House on this day.

God Willing, this collective work between the Government and the House would be beneficial to the entire Indonesian people and may transform the Indonesian nation into a nation that is self-sufficient, sovereign, and distinctive in personality, which are in conformity with the noble ideals of our forebears.

Honourable Speaker, Vice-Speakers, and Members of the House,

 The 2018 Bill on the State Budget constitutes the fourth year of the implementation of the Working Cabinet development programmes in a bid to achieve the development goals and is aimed at realizing prosperity and social justice for the entire Indonesian people. Within the last two years, we have laid a solid foundation by reforming the direction of the national development to become more productive, equitably distributed, and just.

Consequently, the 2018 Bill on the State Budget must become a fiscal instrument to boost national economic growth and a just and equitably distributed economy, particularly in the efforts to alleviate poverty, address inequality, and create employment opportunities. In the midst of a global economic situation that is yet to be fully normal, the drawing up of the 2018 Bill on the State Budget must be made realistically, credibly, resiliently, and sustainably, in order to maintain economic stability and business confidence.

In 2015, we have laid a robust foundation for the national development through a fundamental transformation of the national economy. The development paradigm, which was once consumptive in nature, has been changed into a productive one. The energy subsidy expenditures, which were not well-targeted, have been reallocated to various priority programmes for the community, including in the infrastructure sector. We have also begun to allocate the Village Fund to generate a more equitably distributed and just development to the farthest reaches of the homeland, which have so far been mostly left untouched by the development.

In entering the year 2016, the Government moved with higher speed by declaring 2016 as the Year of Accelerated Development, both in physical infrastructure and in social infrastructure. In addition, the acceleration of economic deregulation was also carried out by issuing several Economic Policy Packages.

In 2017, the Government is determined to make a Just and Equitably Distributed Economy as the central focus of the development. This policy primarily covers:

Fist, the redistribution of assets, through the granting of management rights on unattended plots of land to the community, to allow them to be managed and cultivated more productively, and through land legalization by accelerating the certification of lands owned by the people.

 Second, the strengthening of the people’s access to capital, through the People’s Business Credit that reaches a wider number of the society, is larger in amount, and is easier to acquire.

 Third, the improvement of the society’s skills, through vocational education programmes, and vocational education and training on a massive scale.

 

Honourable Members of the House,

 Praise be to God, owing to our unyielding collective work and by the grace of Allah SWT, the national economic development has shown quite promising achievements. In the midst of a global economic slowdown, weakening global commodity prices, and a geopolitical condition that is yet to be fully conducive, the Indonesian economy is able to grow at an average rate of 5.0 percent annually in the period of 2014-2016, and rose to 5.01 percent in the first semester of 2017, driven by an improved export performance and increased investment.

An economic growth that is sustained on an upswing, coupled with various improvements in budget management, continues to encourage investor confidence in us. The World Bank ranks Indonesia as one of the highest ranked countries in the Top Improvers for ease of doing business and lifted Indonesia’s ranking from 106th to 91st in the Ease of Doing Business index for 2017.

In May 2017, the Standard & Poor’s rating agency upgraded Indonesia’s sovereign credit rating to investment grade. Previously, Fitch and Moody’s also raised the outlook for the investment grade rating of Indonesia’s sovereign credit, from stable to positive, concurrently with macroeconomic stability and improved national economic resilience. With these international recognitions, for the first time, Indonesia acquires the rank of investment grade from all the major rating agencies since the post-1997 Asian financial crisis.

With the support of infrastructure improvements and the logistics of the people’s goods supply, as well as the close cooperation between the Government and the Bank of Indonesia, the inflation rate has been kept in check at 3.35 percent in 2015 and 3.02 percent in 2016. Consequently, the people’s purchasing power could be maintained. Inflation control continues to be maintained in 2017, so that until the month of July and through the period preceeding the Eid Al-Fitr, the realized inflation rate could be sustained at a level of 2.60 percent.

In terms of the people’s welfare, the number of poor people continues to decline. In March 2015, the number of poor people totalled 28.59 million people and in March 2017, it decreased to 27.77 million people. Faced with this challenge, the Government will continue to exert its maximum efforts to accelerate the reduction of the number of poor people through a number of innovative programmes on poverty alleviation and social protection.

The inequality between the rich and poor people also displays a decrease. This is evident from the Gini Ratio index that dropped from 0.408 in March 2015 to 0.393 in March 2017. Moreover, the unemployment rate also fell from 5.81 percent in February 2015 to 5.33 percent in February 2017.

The measures to improve the budgeting process are also carried out more comprehensively and take into account various perspectives. In the State Revenues sector, from July 2016 to March 2017, the Government implemented a tax amnesty programme to increase the state revenues, expand taxation databases, and also prepare Indonesia to enter an era of global information disclosure with the application of the Automatic Exchange of Information (AEOI).

On this occasion, I would like to express my gratitude to the House of Representatives for its support in passing Government Regulation in Lieu of Law Number 1 of 2017 on the Access to Financial Information for Taxation Purposes, in the context of the Automatic Exchange of Information. With the approval of the Government Regulation on AEOI, Indonesia has thus acquired a legislative framework comparable to that of more than 100 countries committed to the AEOI. Indonesia will reap the benefits from inter-state taxation information exchange, which will be very useful to enhancing the efforts to extensify our tax revenues.

The Government would also like to express its gratitude for the awareness of the people in joining the tax amnesty programme, which reflects the sense of justice for all the people. Until the conclusion of the programme, the tax amnesty managed to be joined by 973.4 thousand taxpayers with a total repatriated funds amounting to Rp115.9 trillion. Based on the wealth data disclosure, the tax amnesty programme in Indonesia became one of the highest in the world with a total achievement of Rp4,884.2 trillion, consisting of domestic wealth declaration totaling Rp3,700.8 trillion, overseas wealth declaration totaling Rp1,036.7 trillion, and assets repatriation totaling Rp146.7 trillion. Subsequently, this Tax Awareness must be followed by the obligation to pay taxes compliantly in the future. The awareness of the citizens to pay taxes will make the Unitary State of the Republic of Indonesia strong and prosperous.

In the Central Government Expenditures sector, improvements are made by increasing the quality of the expenditures as well as the budget. The increase in expenditures is aimed at financing priority programmes, in particular infrastructure development, in order to increase inter-regional connectivity and support economic growth, in order to absorb labour force and reduce poverty as well as inequality.

A number of output targets in the infrastructure sector have been achieved in the period of 2015-2016. The road construction and national roads capacity expansion totaling a length of 7 thousand kilometres, the construction completion of 4 new airports, as well as the construction of new railways for a distance of 199.6 spoor kilometres are expected to open a wider access to the economy. In addition, the Government also focuses on the provision of housing for low income people through the construction and quality improvement of Low-Cost Apartments (Rumah Susun), Special Housing (Rumah Khusus), and Self-Help Housing (Rumah Swadaya) totaling 210.5 thousand units.

Furthermore, since 2015, the Government has reformed the subsidy policy to make it better targeted and has strengthened the social protection programmes through the scope expansion of the conditional cash assistance for the Family Hope Programme (PKH) that jumped from previously covering 3.5 million families in 2015 to 6 million families by 2017. The Government also gradually builds a synergy between social assistance programmes, by gradually diverting the Rice for Prosperity Food Subsidy (Rastra) to Non-Cash Food Subsidy for 1.4 million beneficiary families in 44 cities.

In order to accelerate the development in the regions, through the Transfers to Regions and the Village Fund, a number of development targets have been successfully augmented. With the Physical Special Allocation Fund (DAK), the Government has increased the people’s accessibility to basic infrastructures, such as access to drinking water increased as many as 386.7 thousand house connections until the end of 2016. In addition, the Government also supports the development of the people’s economy in the regions by raising the quality percentage of provincial roads up to 71.8 percent, regencial/municipal roads up to 61.2 percent, and agricultural irrigation for 895 thousand hectares.

The commitment of the Government to develop the regions starting from the smallest unit of the government can be attested from the achievement of the Village Fund allocation. Since its allocation in 2015, the Village Fund has funded 89.8 thousand kilometres of village roads, 746.4 thousand metres of bridges, access to clean water for 22.1 thousand households, 1.7 thousand units of mooring boat, 14.9 thousand schools for Early Childhood Education Programme (PAUD), 4.1 thousand Village Maternity Clinics (Polindes), 19.5 thousand wells, 3,000 village markets, 108 thousand drainage and irrigation networks, 9.9 thousand Integrated Service Posts (Posyandu), and 941 water retention basins.

Meanwhile, with regard to Budget Financing, over the last few years, the Government has implemented an expansive fiscal policy as it intends to promote a sustainable and just economy for the entire Indonesian people. However, the Government continues to implement this policy in a prudent manner while maintaining fiscal sustainability into the future. The rise in debt financing is directed towards future productive sectors, such as infrastructure development, improvement of the education and health of the people, as well as regional development.

The Government will continue to maintain a prudent and wise debt management policy in order to generate a maximum positive impact of the development, which benefits could be enjoyed by the society at large. Despite the widening expansive development carried out in the period of 2015-2017, the debt ratio and deficit to the GDP have been kept under control; the debt ratio to the GDP has remained under 30 percent and the State Budget deficit has stayed under 3 percent. The Government will also continue to reduce the primary deficit, so that fiscal health and sustainability could always be sustained. The relatively small deficit figure compared to that of other G20 and emerging countries; and the relatively higher Indonesian economic growth, demonstrates that the additional Indonesian debt has resulted in increased scale and productivity of the national economy.

 

My Fellow Countrymen,

The 2018 Bill on the State Budget is drawn up while still guided by 3 (three) major policies.

First, to promote the optimization of state revenues through an increase of the tax ratio and the optimization of natural resources and state assets management.

Second, to enhance the quality of state expenditures through an increase of the quality of productive capital expenditures, efficiency of non priority expenditures such as goods expenditures and subsidies that must be well-targeted, synergy between social protection programmes; maintenance and refocusing of priority budgets such as for infrastructures, education, health; and strengthen the quality of fiscal decentralization to reduce inequality and improve public services.

Third, a sustainable and efficient financing policy, which is implemented through a deficit and debt ratio control, declining primary balance deficit, and creative financing development, such as through Government-to-Business Cooperation (KPBU) schemes.

In conformity with the medium-term fiscal policy, the theme for the 2018 fiscal policy is “Consolidating Fiscal Management in order to Accelerate a Just Economic Growth”.

 

Ladies and Gentlemen,

By taking into account the entire prevailing dynamics and challenges to be addressed, the Government projects the following macroeconomic indicators for 2018 to serve as the basis for drawing up the 2018 Bill on the State Budget.

First, economic growth is targeted to reach 5.4 percent. This optimistic economic growth will be achieved through the support of sustained people’s consumption, increased investment, and improved export and import performance. In 2018, the economic development will be geared towards cultivating the regional economies of Maluku, Papua, Kalimantan, Sulawesi, Bali, and Nusa Tenggara through their increased connectivity with the Islands of Java and Sumatra, which have, for a long time, been the largest contributors to the national economy. Infrastructure improvement and development, both connectivity and energy availability, play a key role in the efforts to achieve an equitable distribution of the economy. Furthermore, the development of the border areas has also been set as a priority of the Government, so they can become gateways to international trade transactions, and so they will not only lift the economy of the border areas but also the national economy altogether.

Second, the inflation rate is projected to be sustained at a level of 3.5 percent, supported by the improvement of the national production capacity, price stability, and a relatively low global commodity prices. Nevertheless, the impact of climate on food commodity prices has become a risk that needs to be considered, since climate is one of the factors that could cause an increase in the inflation rate. Strengthening the policy coordination on the monetary, fiscal, and real sectors will naturally be pursued and improved upon to provide stronger support to ensure domestic price stability.

Third, the rupiah exchange rate is estimated to reach a level of Rp13,500 to the United States dollar. The Government, in collaboration with the Bank of Indonesia and the Financial Services Authority, undertake strengthening endeavours in the financial sector so as to maintain exchange rate stability. The framework for financial market deepening is expected to influence capital inflows to the Indonesian financial market and could reduce pressures on the rupiah exchange rate.

Fourth, the average interest rate of the 3-month Government Treasury Bill in 2018 is assumed to reach 5.3 percent. The market anticipation to cope with the policy of the United States Central Bank and the manageable domestic inflation rate contribute to the efforts in controlling the interest rate of the 3-month Government Treasury Bill.

Fifth, the assumption of the average price of Indonesian crude oil is estimated to reach USD48 per barrel. The increase in energy needs in the context of the global economic recovery constitutes a factor that could influence the increase in oil prices in 2018.

Sixth, the volume of oil and gas that would be ready for sale during 2018 is estimated to reach 2 million barrels equivalent to oil per day, consisting of crude oil production to the tune of 800 thousand barrels per day and natural gas of approximately 1.2 million barrels equivalent to oil per day.

These basic macroeconomic assumptions have been made based on the latest economic condition and take into account future economic projections, so they are expected to better reflect the condition in 2018.

Honourable Members of the House,

 The 2018 Bill on the State Budget is drawn up in line with a fiscal policy strategy that is aimed at strengthening fiscal stimulus, reinforce fiscal resilience, and maintain fiscal sustainability with a focus on social justice.

The strategic policies elaborated in the 2018 Bill on the State Budget are as follow:

The 2018 State Expenditures, which are projected to amount to Rp 2,204.4 trillion, will be primarily earmarked to reduce poverty and inequality in order to create justice and social protection for the people; this will be accomplished through increased effectiveness of social protection programmes and more selective spending in education, health, and infrastructure.

The efforts to increase the effectiveness and strengthen social protection programmes will be carried out by widening the targeted scope of beneficiaries of the Family Hope Programme to 10 million families and the scope of assistance beneficiaries of the Healthcare Social Security Agency to 92.4 million people.

In addition, in order to channel better targeted subsidies, the Government diverts the channeling of the Rice for Prosperity (Beras Sejahtera/Rastra) food assistance into non cash food assistance and will also widen its beneficiaries. In order to control inflation and maintain the purchasing power of the people, the government also continues to allocate subsidies for fuel, electricity, fertilizer, Micro Credit Programme (Kredit Usaha Rakyat) and housing interests, and for public services.

With a view to increasing access to education, the Government will continue the policy of granting the Indonesia Smart Card that reaches 19.7 million students, and the granting of Bidikmisi scholarship to 401.5 thousand students, and allocating the school operational assistance that reaches 262.1 thousand public schools and Islamic schools throughout the Homeland.

Still in the effort to increase the quality of human resources, the Government consistently intervenes to reduce the impact of chronic malnutrition that results in the failure to achieve normal height of infants or stunting. We must be mindful that the first thousand days of life will greatly affect a child’s growth, in relation to the child’s emotional, social and physical abilities, and readiness to learn, innovate and compete. This programme will be highly crucial to improving the quality of Indonesian children in the future, as our investment in the Indonesian human resources.

Distinguished Ladies and Gentlemen,

In order to support the growth of economic centres and the development of inter-regional connectivity, the Government carries out the building of new roads totaling a length of 856 kilometres and the building of irrigation networks totaling 781 kilometres. In addition, several programmes of activity of the Government in the framework of increasing the access to education, health, and other basic facilities, are undertaken, among others, through the building and rehabilitation of 61.2 thousand classrooms, the building of waste water sanitation for 853 thousand household heads, and the construction of 7,062 low-cost apartment units for low-income people.

In carrying out the development, the Government also invites all parties to work collectively – be it State–Owned Enterprises, Regional-Owned Enterprises, Regional Governments, or the private sector – in the development of creative financing, such as through Government–to-Business Cooperation (Kerjasama Pemerintah dan Badan Usaha KPBU) or Non Government–to-Business Cooperation schemes in order to collectively fund infrastructure development.

With a budget allocation for the Transfers to the Regions and the Village Fund amounting to Rp761.1 trillion, the synchronization of planning and budgeting process continues to be undertaken to encourage the effectiveness of development funding. In addition to supporting governmental activities in the Regions, those budgets will be used more selectively for financing development programmes that have become national priorities, primarily through the Special Allocation Fund (Dana Alokasi Khusus/DAK) and the Village Fund (Dana Desa).

The budget for the Transfers to the Regions and the Village Fund are primarily aimed at improving the quality of public services in the regions, creating job opportunities, alleviating poverty, and reducing inter-regional inequality. The Special Allocation Fund for physical use will be directed to catch up on the lag in infrastructures for public services, affirmation to the less developed, border, islands, and transmigration areas. The use of the Village Fund will be strengthened to widen development in the villages, both in terms of facilities and infrastructures, which are performance-based.

Strengthening the management of the Central and Regional Financial relations is also further enhanced by providing technical guidance on Regional Financial Management in around 200 regencies/municipalities throughout the year 2018. In this manner, the equitable understanding and skills of the regional financial managers will create a harmonisation of the Central and Regional Finance.

The financial management, which falls under the responsibility of the Ministries/Institutions and Regional Governments, requires the full support of all parties, so that every rupiah of the people’s money is truly utilized efficiently and for the greatest prosperity of the people. Corruption and squandering of the people’s money should not be tolerated.

Honourable Members of the House,

In order to achieve the aforementioned targets of development, it is necessary to increase the State Revenues in 2018 to the tune of Rp1,878.4 trillion. The Government will take some corrective measures in the taxation sector, including by making tax reforms, improving tax data and information system, widening the tax basis, and preventing tax avoidance practices through the tax information disclosure (Automatic Exchange of Information). Nevertheless, the Government will continue to support the business sector development by providing tax incentives.

Increased revenues from customs and excise will also continue to be optimized through better supervision, and the imposition of goods subject to excise duty, which is followed by an improved service quality at customs offices.

The Non-Tax State Revenues (PNBP) will also be advanced by striking a balance in the utilization of natural resources, profits from state-owned enterprises, and other economic sources from the Non-Tax State Revenues.

Honourable Leaders and Members of the House,

 Being guided by the theme of the 2018 fiscal policy and its supporting strategy, the State Revenues in the 2018 Bill on the State Budget are projected to reach Rp1,878.4 trillion. Out of this total amount, the Tax Revenues are projected to reach Rp1,609.4 trillion and the Non-Tax State Revenues are projected to reach Rp267.9 trillion. The Government will do its utmost to achieve the afore-mentioned revenues target by making various corrective measures and utilize all national economic potentials, yet while still maintaining the investment climate and business sector stability.

In the meantime, the State Expenditures in the 2018 Bill on the State Budget are projected to reach Rp2,204.4 trillion, comprising of the Central Government Expenditures amounting to Rp1,443.3 trillion, and the allocation for the Transfer to Regions and Village Fund amounting to Rp761.1 trillion. The Government will continue to take measures in efficiency, more heightened quality of expenditures, and in the achievement of development targets to increase the welfare of the people, alleviate inequality, and realize a just and equitably distributed development.

With the aforementioned planned State Revenues and State Expenditures for 2018, the budget deficit in the 2018 Bill on the State Budget is projected to reach Rp325.9 trillion or equivalent to 2.19 percent of the GDP. The said target of the 2018 budget deficit is lower than its outlook in 2017, which amounted to Rp362.9 trillion or 2.67 percent of the GDP.

The Primary Balance Level in 2018 is also planned to decrease, from an estimated level of minus Rp144.3 trillion in 2017 to minus Rp78.4 trillion.

In order to finance the 2018 budget deficit, the Government will utilize domestic and international sources of financing, in the form of loans/debts, which will be managed prudently and responsibly in accordance with international management standards. The loans will be utilized for productive activities that support the national development programmes, in the sectors of education, health, social protection, infrastructure, as well as defense and security. Moreover, the debt-to-GDP ratio will be sustained below the level regulated in the state finances, managed in a transparent and accountable manner, and with minimized risks posed to economic stability in the present and in the future.

Honourable Speaker, Vice-Speakers, and Members of the House of Representatives and the Regional Representatives Council of the Republic of Indonesia,

My Fellow Countrymen,

 I have thus concluded my statement on the major points of the 2018 Bill on the State Budget, which will become materials for the deliberations on the Bill on the State Budget for the 2018 Fiscal Year with the House of Representatives and the Regional Representatives Council. I hope to count on the support of the entire Speakers and Members of the House and the Council to conclude the deliberations on the Bill in a timely manner, in order to be implemented by the Government in carrying out the development in 2018.

May God the Almighty always bestow His blessing upon our steps, to realize the Unitary State of the Republic of Indonesia that is self-sufficient, sovereign, and distinct in personality; as well as just and prosperous for the entire people of Indonesia.

Long Live the Republic of Indonesia!

Long Live the Land of Pancasila!

I thank you.

Wassalamualaikum Warahmatullahi Wabarakatuh,

Om Shanti Shanti Shanti Om,

Namo Buddhaya.

Jakarta, 16 August 2017

THE PRESIDENT OF THE REPUBLIC OF INDONESIA,

     Sgd.

JOKO WIDODO

  • 16 August 2017
  • 381 Views

STATE ADDRESSOF THE PRESIDENT OF THE REPUBLIC OF INDONESIA ON THE OCCASION OF THE 72nd ANNIVERSARY OF THE PROCLAMATION OF INDEPENDENCE OF THE REPUBLIC OF INDONESIA BEFORE THE JOINT SESSION OF THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA AND THE REGIONAL REPRESENTATIVES COUNCIL OF THE REPUBLIC OF INDONESIA

Bismillahirrahmanirrahim,
Assalamu’alaikumWarahmatullahiWabarakatuh,

Om Swastiastu,

NamoBuddhaya,

May Peace Be Upon Us All

 

Honourable Speaker, Vice Speakers, and Members of the House of Representatives of the Republic of Indonesia,

Honourable Speaker, Vice Speakers, and Members of the Regional Representatives Council of the Republic of Indonesia;

Distinguished Chairpersons, Vice Chairpersons, and Members of State Institutions;

Distinguished Bapak BJ Habibie, the Third President of the Republic of Indonesia,

Distinguished Ibu Megawati Soekarnoputri, the Fifth President of the Republic of Indonesia,

Distinguished Bapak Susilo Bambang Yudhoyono, the Sixth President of the Republic of Indonesia and Ibu AniYudhoyono,

Distinguished Bapak Try SutrisnoandBapakHamzahHaz,

Distinguished Bapak Boediono and Ibu HerawatiBoediono,

Ibu Sinta Nuriyah Abdurrahman Wahid,

Ibu Karlina Umar Wirahadikusumah,

Excellencies Ambassadors of Friendly Countries and Heads of International Agencies and Organizations;

 

My Fellow Countrymen,

Let us together express our gratitude to God the Almighty, for his blessings and compassion we are able to attend the Joint Session of the Regional Representatives Council of the Republic of Indonesia and the House of Representatives of the Republic of Indonesia in the Commemoration of the 72nd Anniversary of the Independence of the Republic of Indonesia.

 

My Fellow Countrymen,

On many occasions, I have always reiterated that we are a big nation. Once again, Indonesia is a big nation. Indonesia is big not only because of its population of more than 250 million people. Indonesia is big not because it has around 17,000 islands. Indonesia is big not only because of its abundant resources.

However, we achieved our grandeur because our nation has stood the test of time and because we are able to remain united until we reach our 72nd anniversary of independence. Meanwhile, when some other countries are still plagued with violent conflicts among ethnicities, with divisions among religions, disputes among groups, we are grateful that we remain united within the framework of the Unitary State of the Republic of Indonesia with its Bhinneka Tunggal Ika motto. We have even become a role model for many countries in terms of managing diversity and building unity.

We are a fighting nation who possesses the courage to fight with our own power to win our independence. We fought for our independence thanks to the struggles of our heroes, clerics, Islamic students, religious leaders, and fighters from all across the nation.

This all gives us a sense of pride of Indonesia, our beloved country. This all too gives us confidence to face the future. We have to abandon the legacy of colonialism that bequeathed our nation a slave mentality, a character of inferiority, a character of cowardice, and persistent pessimism to look to the future.

We have to abandon those negative mentalities of scorning one another, mocking one another, and slandering one another because we are all brothers and sisters of the nation.

We have to lay a strong cultural foundation. We have to remainunited and stand tall to surmount global challenges that are increasingly complex, that are more extreme, and changing rapidly. Only avirtuous nation iscapable of winning the global competition.

We have to bear in mind that we once became a destination for other countries to study about Islam, art and cultures, science and technology and many others. It is this pride that we will have to re-claim. It is the pride in our own creation and works and our own products.

 

My Fellow Countrymen,

As a big nation with the world’s largest Muslim population, with hundreds of ethnicities and thousands of islands, Indonesian people must have self-confidence to make progress, to keep up with other countries, and to bring all the glory.

We have to believe in the strength of our own people. Evidence proved that we have been able to make great achievements. In the past, we were worried about the presence of foreign banks in our country.  Now we are witnessing our national banks are able to compete with those banks and have become major and modern banks. We have huge potentials, namely our young generations. Many of our young generations have become math, physics and biology olympic champions. Our young generations have showcased their accomplishments, such as becoming champions of the Qur’an memorisation competition, emerging triumphant in robotic works, making innovation in start-ups businesses, and being creative in arts in world stages. Many creative industries and national movie productionsaredriven by our young generation. These young people are getting more popular and their products are enjoyed by many.

However, we must not develop dangerously complacent attitude nor be carried away by all these achievements. We still have much to accomplish. We still have promises to deliver. As a reflection, we have to admit honestly that it would be impossible for Indonesia to become an advanced nation if the homes of our people all over the country do not enjoy electricity. It would be impossible for us to become a competitive nation if our logistics costs are high. It would be impossible for us to become a Global Maritime Fulcrum if we do not have seaports where big ships that transport our products are berthed.  It would be impossible for us to become a sovereign state in food commodities if the number of dams and irrigation channels that irrigate our agricultural fields all over the country are limited.

We are also facing challenges to be free from the trap shackles natural resources. After the era of oil and natural gas booming in 1970s was over and after the collapse of wood booming in 1900s, the era of mineral booming also came to an end. Even prices of several other commodities sharply fell. Therefore, we have to make a change.

 

My Fellow Countrymen from Sabang to Merauke, from Miangas to Rote,

We have to address all the problems quickly. It means we also have to draw a strict line. We may not doubt to safeguard our sovereignty, to safeguard our seas, to safeguard our borders, to safeguard our natural resources. We have to be brave to fight against the plundering of our marine resources. We have to be brave to sink illegal vessels to protect our fishermen. We have to be brave to safeguard every square inch of our land to bring prosperity for our own people. We have to be brave to dismiss Petral (a subsidiary of state-owned oil and gas company PT Pertamina). We have to be brave to shift subsidies for productive things. We have to be firm in the fight against drug dealers who destroy the future of our young generations. We have to be firm in facing infiltration of ideologies such as extremism, radicalism, and terrorism that harm the pillarsof our countries.

There will be no obstacles for us to draw a strict line because we hold on to Pancasila, the 1945 Constitution, the Unitary State of the Republic of Indonesia, and Bhinneka Tunggal Ika. We dare to take firm actions because we have Pancasila as our national principle, as the ideology for the nation and our souls.

Pancasila is a unifying force for all of us that we must internalise, that we must practice, and must become our working ideology in the life of our nation and our country. Therefore, the Government has taken an initiative to set upa Presidential Working Unit for the Fosteringof the State Ideology of Pancasila (UKP-PIP) that is mandated to inculcate Pancasila ideology into all elements of the people, including the young generations, the successor of this nation.

 

My Fellow Countrymen in Sabang,

Assalamu’alaikum, Krue Semangat!

To fulfil the promise of our independence, we have to be more focused in our work. In the first year of the Working Cabinet, the Government laid a strong national development foundation through the transformation of economic fundamentals and by re-adopting the Indonesia-centrist paradigm. In the second year, the Government pushed for the acceleration of national development, both in physical infrastructure development, in the acceleration development of human resources and in the improvement of our competitiveness to catch up with other countries. We also accelerated economic de-regulation by issuing several Economic Policy Packages.

In the third year, the Government moved ahead by focusing on the policy of equitable and just economic policies. The year 2017 is the year of collective work to realize equitable and just economy for all Indonesians.

We want all Indonesians all over the country to be able to feel the benefits of development. People in Aceh, Miangas Island, and Rote Island can enjoy the fruits of development evenly. We want farmers, fishermen, labours, clerics, traditional market traders, religious figures, civil servants, members of the Indonesian National Defence Forces (TNI), members of the Indonesian National Police (POLRI), journalists, cultural activists, university students, and many others to join hands to move forward, make progress and bring prosperity.

We do not want that prosperity to be only enjoyed by someone or a selected few. This is the independence promises that we must immediately fulfil, namely protecting the whole Indonesian people and the nation, improving public welfare, educating the life of the people, and in the establishment of a world order based on freedom, eternal peace, and social justice.

It is toward that destination we are moving into. In the past three years, the Government has been focused on alleviating poverty, reducing gaps, and lowering unemployment rate. As a result, poverty level in Indonesia dropped from 28.59 million people in March 2015 into 27.77 million people in March 2017. As for Gini Ratio, which measures the level of economic gap, ours continues to improve and reached 0.393 in March this year, as opposed to 0.414 in September 2014.

Our inflation had also been kept in check at 2.60 percent from January until July 2017. Even in May this year before the fasting month of Ramadan, our inflation was only 0.39 percent.

We also continue to maintain just and equitable economic growth. We have to ensure that our economic growth, which is 5 percent every year on average in the period of 2014-2016, is not only enjoyed by certain people but also by the whole Indonesian people.

Therefore, development that we are undertaking is not only for those in big cities but for all Indonesians in villages, marginal areas, outermost islands, and border areas.

We want people living in border areas to become parts of the Unitary State of the Republic of Indonesia. We want people living in border areas to feel the presence of the State through the development of border posts (PLBN) in Motaain and Motamasin in East Nusa Tenggara, Skouw in Papua, Entikong in West Kalimantan, Aruk in West Kalimantan, and Nanga Badau in West Kalimantan. Border posts are Indonesia’s forefront porches that we expect to be able to create new pockets of economic growth so our development can be more equal all across the country.

To accelerate equality of development in the regions and in the villages, the Government has increased budgets for transfers to the regions and village funds. Through the Physical Special Allocation Fund (DAK), the Government has improved access for the people to get basic infrastructure services suchas drinking water channelled to the people’s houses. The Government has also pushed for the development of economies in the regions by increasing the percentage of the numbers of provincial roads, regency/municipality roads, and by improving irrigation system for agricultural sector. The commitment of the economic equalityhas also been made through the increase in the Village Funds, which have this year amounted to 60 trillion rupiah. With these Village Funds, the Government urges the acceleration of economic growth and equalityin the villages.To support equality, the Government has also encouraged the rise in the national electrification ratio that reached 92 percent in March 2017. Before this respected assembly, I would also like to congratulate the people of Wogalirit Village of Doreng District, Sikka Regency, East Nusa Tenggara, who have after 72 years of the independence eventually enjoyed electricity. I would also like to congratulate other villages across the nation that were finally able to enjoy electricity.

The desire to make a just equality is not merely a slogan. We have really made it happen. For years, our brothers and sisters in Papua had to buy fuels at high price, ten times as high of that in Java or Sumatra Islands. This must no longer happen in the Land of Pancasila. Therefore, the Government has implemented the one-fuel price policy so that our brothers and sisters in Papua can enjoy the same price as that in Java and other regions in Indonesia.

 

My Fellow Countrymen in Merauke, Namek-Namuk, Izakod Bekai lzakod Kai, One Heart with One Dream

Seventy-two years after our independence, when other countries have explored the outer space, the affairs of land certification for the people have not been resolved. As a result, there have been land disputes either among citizens, between citizens and corporates, or even between citizens and the Government. Therefore, through the policy of Just Economic Equality, the Government has accelerated the process of land certification that has so far reached 250 thousand fields.

The Government is currently redistributing lands for the people and it has handed over 707 thousand hectares of forest to indigenous communities to be managed productively. Besides, the Social Forestry Program is also being implemented to make the people comprising 40 percent of those in the lowest layer gain the access to make use of the forest to improve their welfare.

The Government is also continuing pro-people programs that have been run since the first year of the Working Cabinet, mainly the Aspiring Family Program (PKH), the Fishermen Protection Program, the Program to Accelerate the Construction of Apartment for Low-Income People, and the program to improve the quality of improper housing (RLTH).

To reach the 40 percent of those in the lowest layer, the Government has reformed policies so that subsidies can be targeted accurately. The Government has gradually made a synergy between social aid programs and has turned rice social assistance (Rastra) into a non-cash aid. Besides, the efforts in favouring the 40 percent of the people from the lowest layer have also been made through the strengthening of social aid programs and the increasing of the number of beneficiaries.

To support micro, small, and medium enterprises, the Government has also made every effort to lower the interest rate for the People’s Business Credit (KUR). Now, the interest rate of KUR is 9 percent. We hope that 94.4 trillion rupiah of KUR disbursed in 2016 could elevate prosperity for micro, small, and medium enterprises. With easier access of capital, we wish that this could drive the economy of the people, particularly that of small merchants. Besides providing easier access of capital, we have also revitalized traditional markets so that merchants could run their trading activities more comfortably and the markets could compete with modern markets.

 

My Fellow Countrymen in Miangas,

Tabea, Sansiote Sang Patepate,

Greetings of Peace in Unity,

We have to bear in mind that building Indonesia is building its people. Alhamdulillah, thanks to God, our collective work in improving the quality of human development in Indonesia has so far yielded in an impressive result. Indonesia has improved from a country categorized with medium high development to a country with high human development, with its Human Development Index (IPM) climbing up from 68.90 in 2014 to 70.18 in 2016.

The rise in IPM cannot be set aside from our collective work in increasing the coverage of the Healthy Indonesia Card (KIS) program, the Smart Indonesia Card (KIP) Program, the National Health Insurance (JKN) Program, and the Supplementary Feeding (PMT) Program for infants and pregnant women.

The human resource development will surely carry on. The Government is underscoring not only the efforts to minimize the impact of chronic nutritional deficiency, to decrease the number of stunting cases, but also the efforts to prepare the young generation that is qualified, skilled, and competitive. For that reason, the Government has initiated the improvement of the labours’ competence, among others, through vocational education and trainings. We constantly increase and strengthen the education in vocational high schools (SMK) and polytechnics to make them meet the need in the industrial world. All of these are made to produce strong and reliablehuman resources.

 

My Fellow Countrymen in Rote,

Ita Isa, We are United as One,

The development of human resources and social infrastructures should be in line with the accelerated development of infrastructure. To make our children able to study well, the development of educational facilities will continuously be improved.

In line with the preparation of the Indonesian human resources, the Government has also developed centres of new economic growth, new industrial areas outside Java such as Sei Mangkei Industrial Zone in North Sumatra and Morowali Industrial Zone in Central Sulawesi.

The development of the industrial zones is supported with the infrastructure development in transportation to improve connectivity in each part of the country. We also want that all regions in Indonesia are well-connected either by air, sea, or land. Therefore, we are building pioneer airports, seaports, parallel roads in border areas in East Kalimantan, cross-border roads in Papua, and border-belt roads in East Nusa Tenggara Province.
Regional economy, mainly in border areas, will not develop rapidly unless electricity and telecommunication facilities exist. For that reason, the Government have persistently urged electricity development in 31 priority locations and continued the construction of base transceiver stations (BTS) to make the districts in border areas able to access telephone services and information.

 

My Fellow Countrymen from Sabang to Merauke, from Miangas to Rote,
We will become an advanced country considered by other countries in the world if we have competitive edges. One of the factors causing our competitiveness to remain weak is corruption, the nation’s common enemy. For that reason, before this respected Plenary Session, I would like to invite every Indonesian citizen to work together to fight against corruption. The Government supports any effort, by any party, to prevent and fight against corruption as well as to make the Corruption Eradication Commission (KPK) stronger.

Other than fighting against corruption that could eat away the State Budget,eat away to people’s money, we are also improving the national taxation system and database. Therefore, the Government saluted to the respected Members of the House of Representatives that have in their session agreed on the Government Regulation in Lieu of Law (Perppu) No. 1 of 2017 on the Access of Financial Information for the Purpose of Taxation. We feel optimistic that with the regulation, the Indonesia’s State Budget will remain robust as the source of its strength stems from the people, and every rupiah in it is spent for the sake of the people. Besides, Indonesia is apparently getting more than ready to welcome the world taxation era that will implement the Automatic Exchange of Information (AEoI).

Afterwards, considering Indonesia’s competitiveness in the future, we have to anticipate changes which are now mostly in digital forms. We must keep developing national competitiveness by making use of digital breakthrough as an inseparable part of bureaucracy, public services, the development of micro, small, and medium enterprises, the national economic system, and the disbursement of cash and non-cash subsidies.

The Government has also removed many regulations and eliminated cumbersome and unnecessary bureaucracy that have hampered Indonesia’s economy, mainly by implementing 14 Economic Policy Packages since 2015.

The result of the various Economic Policy Packages can be seen in the increasing international confidence in Indonesia’s economic resilience. In the Ease of Doing Business (EoDB) rank, Indonesia’s rank increased from 106th in 2016 to 91st in 2017. Moreover, Indonesia was rated investment grade or worthy of investment by three credible international rating agencies, the Standard and Poor’s Global Ratings, Fitch Ratings, and Moody’s. Even in a business survey conducted by the United Nations Conference on Trade and Development (UNCTAD), Indonesia’s position rose to the 4th place as a prospective investment destination country.

 

Distinguished Members of Parliament,

Ladies and Gentlemen,

One of the promises made as an independence country as stated in the preamble to the constitution is that we participate in the maintenance of world order based on independence, eternal peace, and social justice. It requires all of us to implement an independent and active foreign policy.

In international diplomacy, one of Indonesia’s active roles and leadership are shown by encouraging Myanmar to resolve the conflict in Rakhine state through more inclusive development, respect for the human rights, and protection for all communities. Indonesia has also accommodated 1,806 migrants dislocated from the conflict, sent humanitarian aid, and built schools in Myanmar.

We also give full support to the independence of Palestine and we have opened an Honorary Consulate in Ramallah, Palestine. We also continue to encourage ASEAN and the United Nations to support the independence of Palestine.

Indonesia also strongly condemned the restrictions on worship at Al-Aqsa Mosque in July 2017. Indonesian diplomacy took the necessary moves to defend the Palestinian people by, among others, proposing international protection in Al-Aqsa Complex.

While in economic diplomacy, our diplomatic machine also continues to work on non-traditional markets in Africa, the Middle East and Asia. Over the past year, PT INKA successfully exported 150 railway carriages to Bangladesh and PT Dirgantara Indonesia exported CN 235 aircraft to Senegal and Thailand.

The protection of our citizens overseas also becomes our common commitment. In addition to taking steps to protect and assist migrant workers, we have also managed to free most of the Indonesian citizens abducted by terrorist groups in Mindanao and evacuated Indonesians trapped in the ISIS conflict in Marawi.

 

My Fellow Countrymen,

In the midst of a wave of globalisation that is changing very fast and extreme, Indonesia’s independence is a very important pillar in realising people’s prosperity and upholding social justice. The Government continues to work hard to realise food sovereignty, by increasing the production of strategic foodstuffs, mainly rice, corn, beef, chilies, and shallots.

The Government also continues to strengthen the nation’s independence by increasing technological innovation and constructing new renewable energy power plants and encouraging the increment of Local Content Level (TKDN) in constructing new renewable energy power plants.

 

My beloved people,

Distinguished Session,

On this occasion, before all Indonesian people, I want to emphasise the importance of democracy and stability in order to realise social justice for all Indonesian people. Through democracy, we safeguard people’s sovereignty and harmony in diversity.

We should be grateful that the implementation of the 2017 Simultaneous Regional Head Elections in 101 regions ran safely and smoothly. The Government wishes to thank for the mutual cooperation of all parties, from the central and regional election organizer, the TNI and POLRI apparatus, all political parties, including to all candidates for the regional heads and their vices. Most importantly, the Government expressed gratitude to the people of Indonesia who have given theirvotes, as a representation of political joy and democracy in Indonesia.

I invite all of us to continue working collectively to maintain the joy of Indonesian democracy, especially in the Simultaneous Regional Head Electionsin 2018.

As an important part in maintaining the joyous momentum of the people’s democracy, the Government continues to pay attention to the security stability, and encourages the improvement of the capabilities, professionalism, and prosperity of TNI and POLRI.

The Government and all Indonesian people are grateful to the TNI for always being faithful to the Unitary State of the Republic of Indonesia and staying alert to protect the sovereignty of the nation and state, including from the infiltration of global terrorist movement.

The Government and all Indonesians are also grateful to POLRI for always protecting people’s security. This includes the success of POLRI, BNN, and Directorate General of Customs and Excise in dismantling smuggling of 1 ton of sabu (crystal methamphetamine).

In the future, TNI and POLRI must be strengthened because the future challenges are very complex and changing rapidly. The challenges of defence and security that we face are no longer in the Java Centrist-paradigm, but Indonesian-Centrist. Therefore, our TNI soldiers and defence strategy should be able to safeguard every square inch of land, every ocean wave, and every horizon of Indonesia.

Meanwhile, the types of threats we face today are not only invasions from other countries. There are new threats in the forms of extremism, radicalism, terrorism, human trafficking, drugs-related crime, weapons smuggling, and cyber-crime.

Therefore, I appeal to all Indonesian people, to carry out our national duties and responsibilities to participate in defending the nation. Wherever we are, whatever our education is, whatever our profession is, whatever we do, we all have rights, duties, and equal opportunity to defend the country.

 

Ladies and Gentlemen,

My Fellow Countrymen,

To conclude the State Address before this Honourable Session, I invite all of us who have been granted mandate by the people, who are carrying the mandate of the people, in order to remain steadfast to make the common prosperity and social justice as our course of work, as the aim of our collective work, for the realisation of Indonesia Raya.

Therefore, from Sabang, from Merauke, from Miangas, from Rote, let us all cry out together:

 

Long Live the Republic of Indonesia!

Long Live the Land of Pancasila!

 

Thank you.

Wassalamu’alaikum Warahmatullahi Wabarakatuh,

Om Shanti Shanti Shanti Om,

Namo Buddhaya.

  • 16 August 2017
  • 224 Views

ADDRESS OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA AT THE ANNUAL SESSION OF THE PEOPLE’S CONSULTATIVE ASSEMBLY OF THE REPUBLIC OF INDONESIA 2017

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,

Peace and Prosperity be upon us all,

Om Swastiastu,

Namo Buddhaya,

Greetings of virtue,

 

Beloved People of Indonesia, from Sabang to Merauke, from Miangas to Rote,

Honourable Speaker, Vice Speakers, and Members of the People’s Consultative Assembly of the Republic of Indonesia,

Esteemed Heads, Deputy Heads, and Members of State Institutions,

Distinguished Working Cabinet Ministers and Heads of Non-Ministerial Government Institutions,

Distinguished Bapak B.J. Habibie, the Third President of the Republic of Indonesia,

Distinguished Ibu Megawati Soekarnoputri, the Fifth President of the Republic of Indonesia,

Distinguished Bapak Susilo Bambang Yudhoyono, the Sixth President of the Republic of Indonesia and Ibu Ani Yudhoyono,

Distinguished Bapak Try Sutrisno and Bapak Hamzah Haz,

Distinguished Bapak Boediono and Ibu Herawati Boediono,

Distinguished Ibu Shinta Nuriyah Abdurrahman Wahid,

Distinguished Ibu Karlina Umar Wirahadikusumah,


Distinguished Ladies and Gentlemen,

My Fellow Countrymen,

Let us together express our gratitude to Allah SWT, God the Almighty, for His blessings, we are able to attend the Annual Session of the People’s Consultative Assembly of the Republic of Indonesia 2017.

Before this honourable session, I would like to convey my heartfelt gratitude and appreciation to all State Institutions, for their togetherness, synergy and good mutual cooperation. I am convinced that such togetherness, synergy, cooperation will not weaken the constitutional duties and responsibilities imposed by any state institution, but instead strengthen us all in fulfiling the people’s mandate.

In the spirit of the integrity of Indonesia, state institutions can work better, should we remind each other, control each other, balance each other and complement each other. No state institution has absolute power, more power over any other state institutions. This is the signature of our nation in running the state. This is the strength of our nation in facing every challenge. This is the distinct edge to our nation in facing the future. The strength which has also been reflected in the 72 years of the journey of our nation and state.

We must make history as the foundation for the future. A very important lesson learned from the history of our nation is that we were able to earn, we were able to achieve, we were able to proclaim independence because all children of the nation were able to unite, cooperate, and perform collective work.

We must strive to maintain, nurture, and strengthen the invaluable assets of the unity of Indonesia. And it must be our common ground to undergo and pass the tests of history, that is, to fulfil the promises of the declaration of independence. The promise of independence is to materialise an independent, united, sovereign, just and prosperous Indonesia. I believe we will be able to accomplish this all task if we all wish to unite, eager to collaborate, and perform collective work.

In the future, our nation will face tough challenges. We will explore the oceans of globalisation. We will be dealing with rapidly changing dynamics. We will be confronted with advancement of destructive technological innovation. However, I believe, with unity, we will be able to overcome all those challenges. It is because our nation is a great nation. Our nation has proven itself to have survived the tests of time. Our nation is a nation of fighters.


My Fellow Countrymen, from Sabang to Merauke, from Miangas to Rote,

In seventy-two years of independence, we are grateful for all what  we have  achieved. This is thanks to the hard work of all the people of Indonesia, the collective work of the state institutions.

However, we realise that not all Indonesian people could enjoy the fruit of independence. We are also aware that the benefits of development are not yet evenly distributed throughout the country. We realise that social justice for all the people of Indonesia has not been fully materialised.

Therefore, in the third year of the Working Cabinet, the Government is more focused on equitable economic distribution. We want the Indonesian people who live in the periphery, border areas, outermost islands, isolated areas to feel the presence of the nation, to feel the fruit of development, and to feel proud to be citizens of the Unitary State of the Republic of Indonesia.

Social justice must be manifested in the life of the entire Indonesian and the entire Indonesian native land. The people in Aceh are entitled to enjoy the services of education, health, sanitation, clean drinking water, and transportation in the same manner as other Indonesians across the country. We want people in Papuan borders to be proud of their Homeland because these borders have been transformed into the front porch of the Republic. We also want the Papuan living on the mountains and hills to enjoy the same price of fuel and staple foods as their brothers and sisters in other regions in Indonesia. We hope the people in Miangas Island can feel the presence of the Republic through Healthy Indonesia Card, Smart Indonesia Card, and Supplementary Feeding Program for toddlers and pregnant women. We want the people in Rote Island to feel the benefits of infrastructure developments, good connectivity and lower logistics costs.

We want the quality of life of all Indonesians to increasingly improve. Although our Human Development Index increased from 68.90 in 2014 to 70.18 in 2016, we should not get too content with ourselves. We must continue reducing income disparity. To date, we lowered Gini Coefficient from 0.414 in September 2014 to 0.393 in March 2017.

I believe with a just economic equality, we will become more united. An equitable development will unite Indonesia. A just development will make us stronger in addressing global competition. No one feels like being second-class or third-class citizen anymore because everyone is the citizen of the Republic of Indonesia. Everyone is equal in enjoying the benefits of development. Everyone shares responsibility in collective work to build the nation.

We wish to work closely not in a just economic equality, but also in the ideological, political, social, and cultural developments. In the realm of ideology, we must continue to strengthen our national consensus to preserve Pancasila (the Five Principles), the 1945 Constitution, the Unitary State of the Republic of Indonesia, and the state motto Bhinneka Tunggal Ika (Unity in Diversity). The Government has initiated the establishment of Presidential Working Unit for the Fostering of the State Ideology of Pancasila (UKP-PIP) aimed at internalising the ideology of Pancasila to people from all walks of life, particularly the youth, our future successors. In the field of politics, we must complete the agenda for consolidating democracy to make it more institutionalised. We are grateful that we are able to conduct democratic process at the local levels, simultaneous regional head elections in 101 regions in 2017 in an orderly and and peaceful fashion.

In addition to ideology and political developments, we must not set aside social and cultural developments. We must educate our children to make them a generation who will go to the annals of history – a generation who love the country, have good ethics, morals, and manners, as well as have strong, firm characters. We also continue to develop the culture of the nation which is diverse. Expression of arts and culture from various regions in Indonesia must continue to be awakened in order to enrich the diversity of Indonesia.

 

My Fellow Countrymen,

I believe the tasks of history for an independent, united, sovereign, just and prosperous Indonesia have been inseparable from the support and active participation of the State Institutions.

Over the past year, the People’s Consultative Assembly has strived to bridge the flow of changes, thoughts, aspirations of the people and the regions, and various political ethics of nationalism based on the values of deliberation and consensus, kinship, mutual cooperation in the framework of the Unitary State of the Republic of Indonesia.

As the vanguard of ideology, the Assembly firmly safeguards Pancasila as a guide of life in the society, nation, and state. I welcome the Assembly’s stance to work in synergy with the Presidential Working Unit for the Fostering of the State Ideology of Pancasila which I have set based on Presidential Regulation No. 54 of 2017 for the dissemination and actualisation of Pancasila values ​​in the life of the nation and state.

In carrying out the functions of studies of the constitutional system, the 1945 Constitution and its implementation, the Assembly has succeeded in formulating the National Economic System Structuring, which we hope can support the successful equitable distribution of development. As for absorption functions of public aspiration on the implementation of the 1945 Constitution, the Assembly has facilitated a number of nation’s activities in order to expand the application of ethics in the life of the nation and state in all walks of life.

In the meantime, the House of Representatives also strives to carry out its internal reform to be a public representation body which is more modern and trustworthy.

In performing legislative functions, the House of the Representatives, among others, has completed 14 Bills on the Priority of the 2017 National Legislation Program, some of which are directly related to the smooth support of the Government’s program during 2017 such as the increase of non-oil and gas exports of high value added goods and services, the simplification of licensing and the provision of services and facilities to invest.

In carrying out the functions of monitoring of the administration, the House has formed 46 working committees in various domains of development, as well as conducted fit and proper tests on the proposal of the appointment of a number of state officials. Such tests were applied to select the Board of Commissioners of the Financial Services Authority; Members of the Audit Board of Indonesia; Members of the General Elections Commission and the Election Supervisory Board; and the Head of the State Intelligence Agency. The House also gives consideration and approval to 23 Ambassadors Extraordinary and Plenipotentiary of friendly countries.

Equally important is that the House also continues parliamentary diplomacy to strengthen cooperation between Indonesia and friendly countries to fight for our national interests and find solutions to various international issues. The diplomacy was conducted through the Bilateral Cooperation Group between the House and the Parliament of the Friendly Countries. The House currently has established 49 Groups and plays an active role in international inter-parliamentary cooperation forum.

 

My Fellow Countrymen,

On the other hand, the Regional Representatives Council continues to strengthen its constitutional role, particularly in accommodating and channeling the aspirations of the people and the region. We are truly happy because the Council has shown its performance and maturity in going through difficult times of its internal consolidation.

Amidst the challenges, until the first semester of 2017, the Council’s hard work managed to produce 10 considerations of the Bill and 5 considerations on the budget as well as 13 monitoring results over the implementation of certain laws.

Some of these considerations are sorely needed to accelerate the equitable distribution of development in the regions, such as consideration of the Bill on the Management of Border Areas and the Bill on the National Entrepreneurship and the supervision over the implementation of the Law on Villages.


My Fellow Countrymen,

In safeguarding the state financial management, the Audit Board continues to strive to make breakthroughs to improve the quality of state financial management and accountability both in the central and regional administrations. We are grateful that in 2016, the Audit Board, for the very first time in the history of national development, awarded the Unqualified Opinion (WTP) status to the state financial management. In carrying out the task, the Audit Board has worked closely with the Government Internal Oversight Body. Through such synergy, overlapping inspections that have occurred in the last few years can be fixed.

The Audit Board also implemented a Monitoring Information System of the Follow-up to Inspection Report. With that system, the Audit Board can monitor the follow-up to inspection reports in every Ministry, and Non-Ministerial Government Institution in a more accurate, efficient and timely manner.

We also appreciate the appointment of the Audit Board as the external auditor for the International Atomic Energy Agency since last year for the period of 2016 – 2020. The nomination of the Audit Board not only gained an international acknowledgement but also raised the fame and reputation of Indonesia.

Regarding the development in legal sector, the Supreme Court continues to make efforts in facilitating the people to gain access to justice and public services. Thus, in the first semester of 2017, the Supreme Court has successfully implemented a number of innovations, including the Audio Text Recording System, and Electronic Individual Court Fee Calculation Mechanism in order to create an ease of court services. The Supreme Court also expands public service in remote areas through mobile court programs and conducts court outside the court building.

In addition to innovations in public service, the Supreme Court also carried out Accreditation to Ensure the Quality of Judicial Bodies, to date, the Supreme Court had successfully accredited 186 courts until June 2017.

Meanwhile, the Constitutional Court strives to work to affirm its role as the vanguard of the constitution.

Until mid-2017, the Constitutional Court has ruled 55 cases received. Some of which were related to disputes over the results of regional elections. This success has led the Constitutional Court to a 2017 Election Supervisory Agency Award. In carrying out its role as a guardian of the values of democracy, the Constitutional Court in 2017 has successfully maintained international community trust as the Permanent Secretariat of Association of Asian Constitutional Courts.

We also appreciate the efforts of the Judicial Commission in improving the accountability of judicial service in the Homeland. The Judicial Commission has resolved 8 judge advocacy cases, and monitored 89 court sessions by public report. The Judicial Commission has also facilitated the organisation of Code of Ethics and Code of Conduct Trainings for 277 judges. In safeguarding the dignity of the judiciary, the Judicial Commission has recommended the imposition of sanctions on 33 judges, ranging from mild to severe sanctions.

 

My Fellow Countrymen,

Distinguised Ladies and Gentlemen,

Once again, we must not become complacent with these achievements since we still have tough challenges ahead. We still have poverty and injustice; we are also confronted with global economic uncertainty, extremism, radicalism, and terrorist movements.

However, out of all these challenges, the most crucial one that should become a common priority of all state institutions is to gain high public trust. Public trust is the soul and energy for all state institutions in carrying out their respective duties and functions.

I call on all people, all state institutions to place people as the integral entity of the nation. I encourage us all to always heed the mandate and calls of our people. I invite you all to join hands, collaborate, and perform collective work to materialise social justice for the whole people of Indonesia.

Finally, with a spirit of the unity of Indonesia, I believe we can carry out our constitutional duties for an independent, sovereign, and esteemed life of the nation.

 

Long live the Republic of Indonesia!

Long live the Motherland of Pancasila!

 

I thank you,

Wassalamu’alaikum warahmatullahi wabarakatuh.

Om Shanti Shanti Shanti Om,

Namo Buddhaya.

  • 14 June 2017
  • 397 Views

Introductory Remarks of President of the Republic of Indonesia H.E. Joko Widodo at the Limited Meeting on the Evaluation of National Strategic Projects Implementation and Priority Programs in Banten Province, on 14 June 2017, at the Presidential Office, Jakarta

Unofficial English Translation 

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,

In this afternoon’s Limited Meeting, we will evaluate the National Strategic Projects Implementation in Banten Province.

  • 6 June 2017
  • 200 Views

Introductory Remarks of President of the Republic of Indonesia H.E. Joko Widodo at the Limited Meeting on the Evaluation of National Strategic Project Implementation and Priority Programs in Gorontalo Province, on Tuesday, 6 June 2017, at the Presidential Office, Jakarta

Unofficial English Translation 

Bismillahirrahmanirrahim,

Assalamualaikum warrahmatullahi wabarakatuh,

This afternoon,we will evaluate the national strategic project implementation and priority programs in Gorontalo Province. Good afternoon, Mr. Governor.

  • 31 May 2017
  • 577 Views

Introductory Remarks of President of the Republic of Indonesia H.E. Joko Widodo in the Limited Meeting on the Evaluation of the Implementation of National Strategic Projects and Priority Programs in Bengkulu Province, on 31 May 2017, at the President’s Office, Jakarta

Unofficial English Translation 

Bismillahirrahmanirrahim,

Assalamualaikum warahmatullahi wabarakatuh,

Today, the Limited Meeting will evaluate the implementation of the national strategic projects in Bengkulu Province. I consider the economy in various regions including in areas outside Java has started to flourish and grow rapidly.

  • 24 May 2017
  • 554 Views

Introductory Remarks of President of the Republic of Indonesia at the Limited Meeting on the Follow-Up of the Belt and Road Forum at the Presidential Palace, Bogor, on 22 May 2017

Unofficial English Translation 

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh,

Good Afternoon,

May prosperity be upon us all

Honorable ministers,

In this afternoon’s Limited Meeting, we will discuss the follow-up of several meetings that we participated, particularly, the Belt and Road Forum which was held in Beijing.