President Prabowo Urges Cooperation Between Gov’t and Private Sector

President Prabowo Subianto delivers his remarks on the 2027 State Budget Macroeconomic Assumptions and Fiscal Policy Framework (KEM PPKF RAPBN) at the Plenary Meeting Room of the Nusantara Building, MPR/DPR/DPD RI, Jakarta, Tuesday (05/20). (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto emphasized that improving natural resource governance and strengthening the State’s role in the economy does not mean diminishing the role of the private sector. On the contrary, he stated that Indonesia needs a private sector that is large, dynamic, innovative, and capable of partnering with the Government to create national prosperity.

“We need private sector, we need to support the private sector. We need a dynamic private sector. We need entrepreneurs who are full of innovation, full of initiative, and who possess strong, reliable managerial skills,” the President said in his remarks at the Plenary Session of the House of Representatives (DPR) in the Nusantara Building, MPR/DPR/DPD RI, Jakarta, Wednesday (05/20).

The President explained that Indonesia’s economic direction is Pancasila‑based economy, or a middle‑way economy. According to him, this system takes the best aspects of the State’s role and market mechanisms, while remaining grounded in the principles of familial spirit, mutual cooperation, justice, and equitable distribution.

“The economy that fits Indonesia is a middle‑way economy, the economy that dares to take the best of socialism and the best of capitalism,” he said.

In this matter, the Head of State stressed that the state must remain present to provide protection, monitoring, and support for the people. At the same time, however, Indonesia also requires an entrepreneurial spirit, innovation, a healthy competition, a willingness to take risks, and strong managerial capacity from business actors.

He also encouraged the emergence of new entrepreneurs, especially among the younger generation. The Government, he said, is preparing entrepreneurship education so that Indonesian youth will no longer rely solely on becoming civil servants, but will also dare to compete and build their own businesses.

In addition to entrepreneurship education, the President highlighted the need for financing support for startup companies. He argued that young Indonesians should have the opportunity to grow into strong new entrepreneurs.

“Once they graduate, we must also give startup loans. We must push them, give them opportunities to grow into strong, new entrepreneurs,” the President continued.

On that occasion, the President also asked the banks within the Himbara group to be more supportive of small‑scale entrepreneurs and low‑income communities. He said that economic democracy must open broader opportunities, not only providing financing access to already‑established business groups.

“I ask the Himbara banks to try to be more patriotic. Don’t keep giving credit to the same people, to those who are already rich. If someone has long received Government credit, let them fight on their own. Why keep giving credit to them forever?” he said.

He further emphasized the importance of improving the business climate through bureaucratic reform and faster licensing. The President argued that the Government must not burden the business world through slow, bureaucratic processes, or by creating room for unlawful levies.

“Don’t keep levying the entrepreneurs. Don’t keep harassing entrepreneurs. If Malaysia can issue a permit in 2 weeks, why does ours take 2 years? That’s embarrassing,” he said firmly.

The President also reminded that the relationship between the Government, business actors, workers, MSMEs, the central Government, and regional governments must be built on a spirit of cooperation. In his view, if all components of the nation move together, Indonesia has a great opportunity to create extraordinary prosperity.

“If we unite, if we cooperate like this—entrepreneurs, the private sector, the Government, MSMEs, the central Government, regional governments—if we all cooperate, all sharing the same purpose, we will create extraordinary prosperity,” he explained. (BPMI of Presidential Secretariat) (EST/LW)