Address of the President of the Republic of Indonesia on the Presentation of the Macroeconomic Framework (KEM) and Fiscal Policy Principles (PPKF) for the 2027 State Budget Bill (RAPBN) Before the Plenary Session of the House of Representatives of the Republic of Indonesia, at the Nusantara Building, Indonesian Parliamentary Complex, Jakarta, Wednesday, May 20, 2026
Bismillahirrahmanirrahim.
Assalamu’alaikum warahmatullahi wabarakatuh,
May peace be upon us all,
Shalom,
Salve,
Om swastiastu,
Namo Buddhaya,
Greetings of Virtue,
Distinguished Vice President of the Republic of Indonesia Gibran Rakabuming Raka;
Distinguished Speaker of the People’s Consultative Assembly of the Republic of Indonesia (MPR RI) Ahmad Muzani and Vice Speakers of the People’s Consultative Assembly of the Republic of Indonesia;
Distinguished Speaker of the House of Representatives of the Republic of Indonesia Puan Maharani (DPR RI) and Vice Speakers of the House of Representatives of the Republic of Indonesia;
Distinguished Speaker of the House of Regional Representatives of the Republic of Indonesia (DPD RI) Sultan Bachtiar Najamudin and Vice Speakers of the House of Regional Representatives of the Republic of Indonesia;
Distinguished Speakers and all members of the MPR RI, DPR RI, and DPD RI, and the Chairpersons of State Institutions;
Distinguished Chairpersons of political parties:
Chairperson of the Indonesian Democratic Party of Struggle (PDI-P) represented by Puan Maharani;
Chairperson of the Golkar Party Bahlil Lahadalia;
Chairperson of the Nasdem Party Surya Dharma Paloh;
Representative of the Chairperson of the National Awakening Party (PKB) Mr. Abdul Muhaimin Iskandar, who is currently on pilgrimage;
President of the Prosperous Justice Party (PKS) Muzzammil Yusuf;
Chairperson of the National Mandate Party (PAN) Zulkifli Hasan;
Chairperson of the Democratic Party Agus Harimurti Yudhoyono;
Distinguished Head of the Audit Board of the Republic of Indonesia; Chief Justice of the Supreme Court, Chief Justice of the Constitutional Court, Chairperson of the Judicial Commission, Governor of Bank Indonesia, and the heads of other high state agencies;
Distinguished Coordinating Ministers, Ministers, Commander of the Indonesian National Defense Forces (TNI), Chief of the Indonesian National Police (Polri), the Attorney General, and members of the Red and White Cabinet;
Distinguished representatives of the community groups;
My esteemed and beloved fellow citizens,
Alhamdulillahirabbil’alamin. We offer our gratitude to Allah Subhanahu wa Ta’ala; by His grace and guidance we are able to carry out our state duties today in a safe, calm, and peaceful atmosphere.
On this auspicious occasion, I would like to express my deepest appreciation to the Speakers and members of the People’s Consultative Assembly (MPR), the House of Representatives (DPR), and the House of Regional Representatives (DPD) for holding this Plenary Session, attended by members of the DPR and the DPD, coinciding with the commemoration of the National Awakening Day.
I have deliberately asked for time to stand before you to personally convey the direction of our country’s economic and fiscal policies, as a preliminary discussion in the preparation of the 2027 State Budget Bill (RAPBN).
Esteemed leaders and all members of the House,
As a nation, we are now facing geopolitical and geoeconomic challenges full of conflict, tension, and uncertainty. Wars are happening in many places, even in Europe and the Middle East, regions that, although far from us, have a profound impact and influence on our lives. Therefore, given the current circumstances, I believe that the President of the Republic of Indonesia should be present in person to convey the main points of our economic and state governance.
Ladies and Gentlemen,
I have been sworn in by you, before you, and before the people. My duty is to uphold the 1945 Constitution of the Republic of Indonesia. I have the mandate to protect all Indonesian citizens. I am also responsible for advancing welfare and education in our nation, and for safeguarding Indonesia’s role in maintaining world peace and order.
In this context, I am of the view that the State Budget is more than just a state financial document. The State Budget is a manifestation of our struggle as a nation. It is a tool to protect the people, to strengthen the foundations of the nation’s economy. It is a tool to ensure that every citizen can live a more prosperous life, and serves as a guide for our journey forward.
With this awareness, we draft the State Budget as a form of shared commitment to realizing the noble ideals mandated in our Constitution, the 1945 Constitution, a constitution born from the arena of long struggle. The struggle for independence that lasted hundreds of years, which claimed the lives of thousands, tens of thousands of our predecessors, to achieve an independent, sovereign, just, and prosperous Indonesia.
Ladies and Gentlemen,
Allow me to present the key figures from the 2027 Macroeconomic Framework and Fiscal Policy Principles, or the KEM-PPKF.
First, we are targeting state revenue in the 2027 State Budget to reach between 11.82 and 12.40 percent of our gross domestic product (GDP). State expenditure is planned to be between 13.62 and 14.80 percent of the GDP to support our various priority and vital programs. From a financing perspective, we will maintain our 2027 State Budget deficit within the range of 1.80 to a maximum of 2.40 percent of GDP. We will continue to strive to reduce this deficit.
We are maintaining the yield on 10-year government bonds (SBN) between 6.5 and 7.3 percent. The rupiah exchange rate against the US dollar is between Rp16,800 and Rp17,500. Our fiscal and monetary strategies must be able to maintain the stability of our exchange rate against global currencies.
We will maintain inflation within the range of 1.5 to 3.5 percent. In the energy sector, the price of Indonesian crude oil is estimated at US$70 to US$95 per barrel. Furthermore, oil production is targeted at 602,000 to 615,000 barrels per day, and gas production at 934,000 to 977,000 barrels of oil equivalent per day.
I am confident that Indonesia’s economy can grow in the range of 5.8 to 6.5 percent in 2027, on its way to eight percent economic growth by 2029, with the right economic strategy as well as prudent and sustainable fiscal policy. The growth must be reflected in a tangible improvement of the people’s welfare. Therefore, the poverty rate is targeted to decrease to the range of 6.0 to 6.5 percent, while the previous target was 6.5 to 7.5 percent. Meanwhile, the open unemployment rate must fall to the range of 4.30 to 4.87 percent, while the previous target was 4.44 to 4.96 percent.
Furthermore, we are targeting a further improvement in the Gini ratio, reaching a range of 0.362 to 0.367, while the previous target was 0.377 to 0.380. The gap between the richest and the poorest must not widen. In fact, we must strive to narrow it.
By implementing various priority programs in the human capital sector, the Human Capital Index is targeted to improve to 0.575 from 0.570. Supported by various agricultural programs, the Farmers’ Welfare Index is targeted to increase to 0.8038 from 0.7731. The Farmers’ Terms of Trade, which has now reached a record high of 126, must be further improved.
We will also create jobs on a large scale. The target is to increase the proportion of formal employment to 40.81 percent in 2027 from 35.00 percent in 2026, representing a 5.81 percentage-point increase.
Ladies and Gentlemen,
I have presented the key figures of the 2027 Macroeconomic Framework and Fiscal Policy Principles.
Now I ask for a moment to convey several fundamental matters regarding our economy. I feel that today I must convey these matters from the executive branch to the legislature, in the presence of the leaders of our prominent state institutions. Let us have the courage to face our problems, even when they take the form of challenges, obstacles, or shortcomings.
The management of our national economy was, in fact, already formulated by the founders of our nation. Our founding fathers were neither naive nor inexperienced. They experienced colonialism. They experienced being colonized, humiliated, enslaved, stripped of their honor, and stripped of their dignity. They witnessed and felt the destruction of all honor and self-confidence in our nation, our culture, and our history. They understood what imperialism meant. They felt that the Indonesian people were treated as inferior even to dogs. They saw and experienced how the wealth of the archipelago was taken for hundreds of years by our colonizers to enrich themselves.
We should not be overly amazed by nations whose wealth was built by plundering the wealth of other nations. We must not feel inferior, and we must not always admire what they teach us when they themselves do not practice what they preach to us. I am not calling on us to hate anyone. I am not calling on us to hate other nations. No. In fact, I urge us to learn from them, but we must also learn from history.
There is an old adage that those who do not learn from history will be punished by history and will repeat the same dark history experienced by their ancestors. This is an adage proven true in many countries. Our founding fathers understood that if the leaders of the archipelago were weak, if the leaders of the archipelago were divided, then the wealth of the archipelago would continue to be taken by powers from outside the archipelago. This is history. This happened.
Let us look at the facts. The Netherlands, beginning in the 1500s, continuing through the 1600s, the 1700s, and the 1800s, had the highest GDP per capita in the world throughout those centuries. From the 1500s, 1600s, 1700s, and 1800s, for 400 years they possessed the highest GDP per capita. A country that from north to south might not take even eight hours to cross by car, and from the sea to its borders perhaps not even four hours by car, could possess the highest GDP in the world. Why? Because they controlled our archipelago. They controlled the territory that is now the Republic of Indonesia.
Ladies and Gentlemen,
For that reason, our founding fathers, led by Sukarno, Mohammad Hatta, and Sutan Sjahrir, together with those who formulated Pancasila and our Constitution, the 1945 Constitution, established the blueprint for our national economy. That blueprint is embodied in Article 33 of the 1945 Constitution. Article 33 clearly sets out the economic system that we, as a nation, are meant to implement. Let me affirm today my conviction that if we truly implement Article 33 of the 1945 Constitution properly, purely, and consistently, our country will possess sufficient resources to ensure that Indonesia truly becomes a prosperous and just nation, where the people enjoy welfare and a decent quality of life.
Our people do not dream of extraordinary wealth. They dream simply of living decently and well. They dream of being able to eat properly every day, of being able to provide milk for their children, of being able to buy medicine when their child or their parents fall ill. They dream of having a decent home. They dream that their parents can obtain good jobs with adequate incomes. Those are the dreams and hopes of our people.
Ladies and Gentlemen,
After my evaluation, after examining the figures, after truly seeing the enormous scale of our wealth, I have become even more convinced that implementing the 1945 Constitution must become the responsibility of us all. We certainly want a better future for our people. Therefore, in the government’s view, and I believe every patriot of Indonesia will support this, the land, the waters, and all the natural wealth contained within them must benefit all Indonesians. That was the aspiration of our founding fathers, and only through that can we truly take off toward achieving our shared ideals.
Ladies and Gentlemen,
We want our farmers to smile brightly because of abundant harvests and because they receive fair and sufficiently high prices for their products. We want our fishermen, who risk their lives to provide protein for our people, to go to sea with proper and safe equipment and to receive catches of high value. Today, our fishermen even struggle to obtain ice. Even ice is difficult for them to obtain, let alone diesel fuel, which they desperately need.
The government will intervene and undertake major efforts. Over the next three years, we will build 5,000 fishing villages. This year, we will inaugurate 1,386 fishing villages. We will ensure that every fisherman has access to ice. We will build ice-making facilities in every fishing village. We will build cold storage facilities in every fishing village, and we will establish fuel stations specifically for fishermen in every fishing village. Our fishermen must be empowered, because in the end they are the ones who will safeguard our seas.
Ladies and Gentlemen,
We want our teachers to have decent livelihoods. The future of a nation is determined by the quality of education it provides to its children. The quality of education is determined by qualified teachers, enthusiastic teachers, and teachers who can serve as role models for future generations of the nation. Improving the living conditions of teachers must become our priority.
We also want our micro, small, and medium enterprises to grow so they can provide decent incomes for the majority of our people. And we want parents, as well as the elderly who live alone, to be able to live peacefully in old age because they are supported by an adequate social security system. We want to see an Indonesia in which every citizen lives in harmony and peace, with sufficient clothing, food, and shelter.
We want an Indonesia that is gemah ripah loh jinawi, toto tentrem kerto raharjo, prosperous, peaceful, orderly, and flourishing. We want to realize the aspirations of our ancestors, a baldatun thayyibatun wa rabbun ghafur, a nation that is prosperous, virtuous, and continually blessed with forgiveness and grace from Allah Almighty. A nation where the law applies fairly to all, especially in ensuring justice for the most vulnerable. Let justice not exist only for the powerful and the wealthy.
Ladies and Gentlemen,
We possess very strong capital to realize these aspirations and hopes. Our geographical position is highly strategic. A large percentage of world trade passes through our waters. Our land and seas are vast. Every night, tens of thousands of foreign-flagged vessels illegally steal our wealth from our waters. We must uphold our sovereignty in our own seas.
We possess a demographic dividend that supports strong domestic consumption and a vast domestic market. Our market could be as large as Europe’s, and our natural resources are truly abundant. We possess highly valuable commodities: our coal, our nickel, our copper, our palm oil, our rare earth metals, and our abundant marine resources.
Ladies and Gentlemen,
Indonesia is the world’s largest exporter of palm oil. Foreign exchange earnings from palm oil exports reached US$ 23 billion, equivalent to Rp391 trillion, in 2025.
Indonesia is also the world’s largest exporter of coal. Foreign exchange earnings from coal exports reached US$30 billion, equivalent to Rp510 trillion, in 2025.
In addition, we have now become the world’s largest exporter of ferroalloys. Foreign exchange earnings from our ferroalloy exports reached US$16 billion, equivalent to Rp272 trillion, in 2025.
These three strategic commodities generate more than US$65 billion in foreign exchange earnings, equivalent to Rp1,100 trillion per year.
But let us be honest with ourselves. Today Indonesia is a member of the G20, yet our state expenditure to GDP ratio is the lowest among G20 countries. Likewise, our state revenue to GDP ratio is also the lowest among G20 countries.
From the latest International Monetary Fund data, we can see that Mexico’s revenue ratio is 25 percent of GDP, India’s is 20 percent of GDP, the Philippines’ is 21 percent of GDP, Cambodia’s is 15 percent of GDP, while Indonesia’s is only 11 to 12 percent of GDP.
We need some self-reflection, become aware, and dare to ask ourselves: why are we unable to manage our economy so that our state revenues can match countries such as the Philippines or Mexico? Now we remain below Malaysia. What makes us incapable? What is the difference between us and Malaysia or Cambodia? What is the difference between us and the Philippines?
Ladies and Gentlemen,
Our growth over the past seven years has indeed been good, at five percent each year. Over seven years, multiplied by five percent, our growth amounted to 35 percent. We should have become 35 percent wealthier. But what happened? Once again, I invite us to be honest with ourselves and with our people. This may be painful for us. After receiving this data a few weeks into my presidency, I was deeply concerned.
Ladies and Gentlemen,
Seven years at five percent growth means our economy expanded by 35 percent, yet our poor population increased from 46.1 percent to 49 percent, a rise of three percentage points. The middle class has shrunk, Ladies and Gentlemen. Before this Distinguished assembly, I ask all political parties, all mass organizations, all experts, and all professors: how is it possible that we achieved 35 percent growth while the middle class declined and poverty increased?
Ladies and Gentlemen,
The answer must be scientific. The answer must lie in the numbers. In my view, the most likely explanation is that the economic system we have been running is on the wrong trajectory. Perhaps the difference between us and countries like Mexico, India, the Philippines, and others is systemic. We must look at the facts. The fact is that if we continue like this, if we continue this system for years to come, I am certain we cannot become a prosperous nation. It is simply impossible. Without prosperity, we cannot possibly defend our sovereignty. Most likely, we will become a weak nation, a nation that is always afraid, afraid of fluctuations in the dollar exchange rate, afraid of fuel shortages, afraid of one crisis after another. A fearful nation. A nation whose elites are afraid, even though we have been blessed with extraordinary gifts by the Almighty.
The facts have also shown that there has been an outflow of our wealth for a long time, even since the New Order era. If we look back at the 1950s, during the era of President Sukarno, we cannot fairly judge the 1950s and the 1960s, when Indonesia was consumed by foreign intervention. Rebellion after rebellion made it impossible to build our economy. Even at the start of the New Order, we were thrown into disarray by many problems, but thank God, we did build our economy. But what did we find after so many decades? What I call the outflow of national wealth had occurred.
Ladies and Gentlemen,
Our country has never suffered losses, not for a single year. Our exports have consistently exceeded our imports. In business terms, what we sell is more than what we buy. This country should never have experienced an economic crisis. But what happened? Over 22 years, our surplus was US$436 billion, yet US$343 billion flowed out. The number comes from the United Nations. That means over 22 years, the wealth that remained in Indonesia was US$436 billion minus US$343 billion.
Ladies and Gentlemen,
This is why teachers’ salaries are low, law enforcement officers’ salaries are low, and civil servants’ salaries are low. This is why the budget is always insufficient, and so on. What happened over 34 years? What happened is what is called under invoicing.
Under invoicing is essentially fraud or deception. What businesspeople sell is not reported accurately. Many of them establish companies abroad. They sell from their domestic companies to their overseas companies at prices far below the actual market price. That is what has been happening. Again, this is data from the United Nations.
Let us say we can falsify declarations at Indonesian ports, we can deceive within our own country, we ship 10,000 tons of coal but report only 5,000 tons. That may be possible in Indonesia, but not at the destination country, where it is properly recorded. This has happened with palm oil. It has happened with almost every commodity. It is fraud on paper.
There is also smuggling through the ports. We must be brave enough to call red things red and white things white. We must be brave enough to state things as they are. We must reform our government institutions. We must fix Customs. I still remember that during the New Order era, Customs was so corrupt that we shut it down and outsourced it to the private sector, and state revenue increased. Is that not heartbreaking? This is a struggle for all of us. I do not want to demoralize anyone, but it is time we speak honestly with ourselves and honestly with our people.
Ladies and Gentlemen,
Please display that slide again. Nine hundred billion US dollars have been lost. Imagine if we had kept and used those US$900 billion, what kind of country would Indonesia be today? There is under invoicing, undercounting, and transfer pricing.
Ladies and Gentlemen,
Many of you are smiling. Perhaps some of you are businesspeople. That means you know that what I am saying reflects the actual situation. We have calculated it, we have used random sampling, and we know that the gap between what is reported and what is not reported often reaches 50 percent. The declared value is only 50 percent of the real value.
We find it strange that we are the world’s largest palm oil producer, yet the price of palm oil is determined in another country. I told my ministers this cannot be allowed to happen. I do not want the price of our palm oil to be set by another nation. We will set our own price, and if they do not want to buy at that price, then let them not buy. We will use our own palm oil ourselves.
Why should the price of our nickel be determined by other countries? That cannot continue. I have instructed my Cabinet members to formulate pricing for nickel, gold, all our mining products, and all our commodities. Their prices must be determined in our own country. And if they do not want to buy them, then that is fine. Let the resources remain underground for our grandchildren someday rather than us selling them cheaply, Ladies and Gentlemen. I ask for the support of this assembly. Let us move forward together. It seems I am more Marhaenist than many of you present here.
Ladies and Gentlemen,
That generation understood what colonization truly means.
Ladies and Gentlemen,
From this podium, I want to recall the text of Article 33.
The first paragraph of Article 33 states: “The economy shall be organized as a collective endeavor based on the principle of togetherness.” There is no mention of any other principle, no neoliberal capitalism, no conglomerate principle, no principle that the rich may become as rich as they please while the poor are blamed for their own poverty. That is not the philosophy of Pancasila.
The second paragraph states: “Branches of production that are important to the state and affect the livelihood of many people shall be controlled by the state.”
The third paragraph states: “The land, the waters, and the natural resources contained therein shall be controlled by the state and used for the greatest prosperity of the people.”
The fourth paragraph states: “The national economy shall be organized on the basis of economic democracy.” That means, in an economic democracy, all people must benefit from our economy, with the principles of togetherness, equitable efficiency, sustainability, environmental awareness, self-reliance, independence, and maintaining the balance, progress, and unity of the national economy.
Ladies and Gentlemen,
I believe that the Indonesian language used by our founding fathers is very clear. We do not need to seek all kinds of alternative interpretations. This is our economic blueprint. When we deviate from this blueprint, we should blame no one except ourselves for failing to honor the trust passed down to us by our nation’s founders. How far have we strayed from our own economic blueprint? That is perhaps a discussion for another time and place.
I am convinced that if we implement Article 33 consistently, we will be protected from practices of under invoicing, undercounting, and other such abuses, from the falsification of the tonnage and quality of exported products, from fraudulent practices against our nation and state, and from illegal mining, illegal logging, and illegal plantations.
Ladies and Gentlemen,
How is it possible that people have been mining in protected forests for years and no one has dared to enforce the law?
Ladies and Gentlemen, we estimate that the potential money we could recover from these leakages amounts to US$150 billion per year. Whether we are capable or not depends on our courage, our determination, and whether we can work together effectively. That is why I have said from the very beginning of my Presidency that we must collectively have the courage to find solutions and the courage to act. I am convinced that the root cause of our nation’s economic problems is the leakage of our wealth, the failure to keep our wealth within the Republic of Indonesia. We must be brave enough to face this and brave enough to resolve it.
Therefore, before this distinguished assembly and before all the people of Indonesia, I remind you that I once took an oath here to uphold the 1945 Constitution and all prevailing regulations. We all understand that if we keep repeating the same mistakes, we cannot expect better results.
To that end, in pursuit of our national goals, today the Government of the Republic of Indonesia that I lead is issuing a Government Regulation on the Governance of Natural Resource Commodity Exports. The issuance of this regulation is a strategic step to strengthen the governance of our natural resource commodity exports and the sale of all our natural resource products.
We begin with palm oil, coal, and ferroalloys. We are requiring these sales to be conducted through state-owned enterprise appointed by the Government of the Republic of Indonesia as sole exporter. This means that the proceeds from every export sale will be passed through designated state-owned enterprise before being transferred to the business operators managing those activities. This can be described as a marketing facility.
The primary objective of this policy is to strengthen oversight and monitoring, and to eradicate the practices of underpayment, under invoicing, transfer pricing, and the flight of export proceeds abroad.
Ladies and Gentlemen,
This policy will optimize tax revenues and state revenues from the management and sale of our natural resources. With this policy, we hope our revenues can reach the levels seen in Mexico, the Philippines, and neighboring countries. We do not want our revenues to remain the lowest simply because we lack the courage to manage what is ours, what belongs to Indonesia.
We must believe that all of Indonesia’s natural resources belong to the Indonesian people, to Indonesia as a nation. Therefore, the state has the right to know in full detail which of our natural resources are being sold outside Indonesia. We do not want to be deceived any longer. We want to know precisely how much of our wealth is being sold. I believe and am convinced that every citizen, especially the leaders gathered in this assembly, every leader with sound judgment, intelligence, conscience, and love for the homeland, will not allow our natural resources to continue being managed without oversight or control. This has gone on far too long.
This policy has long been practiced by other nations that truly control their natural resource wealth. We must look to and learn from Saudi Arabia, Qatar, Russia, Algeria, Kuwait, Morocco, Ghana, and even our neighbors Malaysia and Vietnam. We cannot be naive. We must use common sense.
We must learn from these countries. They have been able to manage their natural resource wealth for the benefit of their people. They have succeeded in providing education of the highest quality, on par with the most advanced industrial nations. They have good healthcare, modern infrastructure, and world-class sovereign wealth funds. We should not be ashamed to learn from countries that have long been able to harness their natural resources for the greatest prosperity of their people.
Therefore, I firmly state that what the Indonesian government is doing today is not some unusual or extraordinary policy. This is a practice already carried out by many countries. This is common sense. These natural resources are ours. We must decide where they are sold. We must determine a fair price. We do not want to continue being victims or continue accepting unfair treatment toward our nation. I say it plainly here: Indonesia now stands on its own two feet.
In line with that, my administration is also strengthening the policy on export foreign exchange through a Government Regulation on export foreign exchange from natural resource exploration, management, and processing activities. This policy aims to ensure that the contributions of natural resource sector businesses can once again be optimized for the greatest prosperity of the people.
Once again, the land, the waters, and all of Indonesia’s natural resources belong to us, to the Indonesian people and nation. In our effort to correct weaknesses in our governance system, I ask all of you not to conclude that Indonesia does not need the private sector in our economy. On the contrary, we do need the private sector. We need to support the role of the private sector. We need a dynamic private sector. We need businesspeople full of innovation, initiative, and strong managerial capabilities.
I have always said that our economy is a Pancasila economy, or a middle path economy, or in terms more familiar in global economic development, Indonesia Incorporated, an economy where everyone works together in the spirit of mutual cooperation. That is the meaning of mutual cooperation: the strong and the advanced lift up the vulnerable, while the vulnerable come together and carry out joint endeavors through cooperatives. The wealthy must not prosper alone while leaving the vulnerable behind.
What we mean is that the economy suited for Indonesia is a middle path economy. An economy bold enough to take the best from socialism and the best from capitalism. We need the role of the state, we need state protection, we need oversight, and we need the state to stand on the side of equity and justice. But we also need the best of market mechanisms, the best of the free market economy, which includes initiative, innovation, competition, willingness to take risks, and good management. We must grow a new generation of businesspeople.
To that end, the government wants to expand entrepreneurship education. We want young people to stop lining up to become civil servants or government employees and instead have the courage to compete in the business world, and we must support them. We have brilliant young people. We have thousands of brilliant young people. This is what we are working on together: to provide not only entrepreneurship education, but also startup financing once they finish their studies. We must support them and give them the opportunity to grow into strong new entrepreneurs.
Economic democracy means that the same people should not always be the ones benefiting. I am asking the state-owned banks to become patriotic banks. It cannot always be the same people over and over again. The ones receiving loan are people who are already wealthy. If they have been receiving government loan for a long time, then that is enough. They should now compete on their own. Why keep giving it to them repeatedly? And then the poor are made to pay higher interest rates than large business operators. I think that is simply beyond reason. I am ordering the state banks to change this. Lower the interest rates for the poor. Large and powerful businesses should be able to obtain financing from anywhere. That is how it should be.
Ladies and Gentlemen,
On the other hand, we must not think that the state will do everything. We actually want to create a larger role for the private sector, in the right way, not the wrong way. We must also acknowledge the achievements of many of our companies that are able to compete at the global level.
Companies like Indofood have marketed their products all over the world. Whenever I go to Europe, many Europeans look for Indomie. In fact, many African countries even think it is their own product. Likewise, companies like Mayora have successfully marketed Kopiko in more than 100 countries because they have strong brand ambassadors, and even their president actively promotes drinking coffee everywhere.
But I understand, I understand, I understand. The DPR organizing committee already understands that. Oh, there it is! Madam Speaker, if I may, could I have a drink? Kopiko is happy that its president is a coffee drinker. We must push our private companies to excel. We have Es Teler 77 as well.
Ladies and Gentlemen,
The government must reform all our institutions to create a good business climate. Stop extorting businesspeople. Stop harassing them. If Malaysia can issue a permit in two weeks, why does ours take two years? It is embarrassing. Avoid excessive bureaucratic intervention. The President has already given orders, the ministers have given orders, and those below them keep adding more layers, reworking everything into ministerial regulations, technical regulations, recommendations, and loopholes.
I am reminding everyone, all ministers, get your bureaucracy in line all the way down. Watch out for these bureaucrats, because they have been around for a long time. Ministers come and go every five years, unless they are reshuffled earlier. These bureaucrats, however, remain for a very long time.
Now, a classic bureaucratic tactic: they come asking for your signature at 5:30 in the afternoon, when you are already exhausted. You are worn out, and that is exactly when they show up with papers for you to sign. A lot of the Golkar people here are smiling, which means they have plenty of experience with this. Golkar knows this game well because I myself am a former Golkar member. There are many former Golkar chairpersons over there, Bahlil, Hartarto, where is Airlangga? They are the most experienced at this. Asking for signatures late in the afternoon, when we are already tired and worn down. Be careful with this.
Ladies and Gentlemen,
Businesspeople and the government must work together. I remind workers not to continue making excessive demands. Business owners also work hard and face many difficulties, including paying bank loans. The government wants to help. We provide extensive social protection so that the burden on businesses does not become too heavy. We are also open to hearing from businesses facing difficulties. If they request temporary tariff reductions, we will help. However, businesses should not continuously ask for tax reductions. We understand the global crisis and we will provide support.
Ladies and Gentlemen,
If we unite and work hand in hand, with businesses, the private sector, MSMEs, the central government, and regional governments working together with the same sense of purpose, we will create extraordinary prosperity. We have already proven this. During crises that caused panic in many countries, Indonesia remained calm. We are not euphoric, arrogant, or boastful, but we remain calm because we have the capability.
Ladies and Gentlemen,
World experts and institutions estimate that by 2045, only 19 years from now, Indonesia will become the world’s fifth or even fourth largest economy. I am not the one saying this. Personally, I never even dreamed of it. We simply wanted a decent life, yet they predict that we will become the world’s fourth or fifth largest economy. Imagine that. We will surpass the United Kingdom, France, and Italy.
Ladies and Gentlemen,
Whenever I travel abroad as the President of Indonesia, I am now received with great respect. Many countries are now requesting Indonesia’s assistance. They ask us for fertilizer because our fertilizer production exceeds our domestic needs. Australia requested our help and we provided it, as did India, Brazil, and the Philippines. Imagine this: Indonesia can now help countries that are wealthier than us.
This should not make us arrogant, but it should make us more confident. Of course, there are still many shortcomings. I always encourage us to face our shortcomings, difficulties, and challenges courageously. We must overcome irregularities in our economy. If we do so, we will grow tremendously.
Ladies and Gentlemen,
We have achieved a great deal because we anticipated tensions and crises that could arise. COVID-19 served as a warning and reminded us that during global crises, food exporting countries close their exports. Years ago, when Russia experienced major forest fires, it halted wheat exports and food prices rose everywhere. Not only wheat, but also rice, corn, and sugar prices increased. Then came the war in Ukraine and prices rose again. COVID-19 caused further increases. We have prepared ourselves.
That is why I launched my main program to secure Indonesia’s food supply. We must achieve food self-sufficiency. Alhamdulillah, with the help of my extraordinary agricultural team, I gave them a four-year target and they achieved self-sufficiency within one year.
Our production is the highest in the history of the Republic of Indonesia. Government warehouses are so full that we had to rent additional storage facilities. We now have more than 5.3 million tons of rice reserves. In December 2025, our reserves stood at 3.25 million tons. By May 10, they had reached 5.3 million tons.
We have also secured fertilizer production. For the first time in the history of the Republic of Indonesia, fertilizer prices were reduced by 20 percent. Farmers can now access sufficient fertilizer supplies. What we must guard against now is the misuse or smuggling of subsidized fertilizer. We must protect this together.
Ladies and Gentlemen,
The Free Nutritious Meals program now benefits 62.4 million daily recipients. This includes 6.3 million toddlers, 2 million breastfeeding mothers, and 868,000 pregnant women. We will also provide Free Nutritious Meals to 500,000 elderly people who live alone and require proper nutrition. Why? Because Articles 33 and 34 of the Constitution mandate that the poor must be cared for by the state.
Ladies and Gentlemen,
We acknowledge that there are still shortcomings in the management of this program. We have already shut down more than 3,000 kitchens. I have instructed officials and invited members of parliament and regional leaders to inspect all kitchens. If something improper is found, report it immediately and we will take immediate action. We will not allow such an important program to be managed improperly.
Ladies and Gentlemen,
After many years of aspiring to establish a sovereign wealth fund, in 2025 we successfully launched our own sovereign wealth fund called Danantara, short for Daya Anagata Nusantara, meaning the energy and strength of Indonesia’s future.
Danantara now manages more than US$1,000 billion in assets. We continue discovering state assets that may have been hidden or mishandled by bureaucrats. We keep finding state-owned land, buildings, and assets of enormous value.
Danantara is starting to deliver positive results. It will accelerate development financing, especially investment and working capital for industrialization. We must carry out industrialization. We must build our own cars, motorcycles, televisions, computers, and mobile phones. We must not merely become a market for other nations. And we will achieve this. I have gathered our professors and experts and told them that this is their service to the nation. We must never surrender or feel inferior.
Ladies and Gentlemen,
Industrialization begins with downstream processing of our natural resources. We do not want to export raw materials. Nickel must be processed here, bauxite must be processed here, and eventually coal derivatives must also be processed here.
Job creation is extremely important because it increases people’s purchasing power. The Free Nutritious Meals program alone has created 1.2 million new jobs in kitchens. We are also guaranteeing markets for tens of millions of farmers, breeders, and fishermen. According to the Minister of Investment, 2.7 million new jobs were created in 2025 through domestic and foreign investment projects.
Every Red and White Village Cooperative will create new formal jobs in villages. Each cooperative requires 17 workers, meaning that from the 1,061 cooperatives already operating, we have created 18,000 new jobs reserved exclusively for local villagers. Many more government programs are being prepared by the Red and White Cabinet to create jobs, including fishing villages and subsidized housing. These have been organized into the National Priority Work Program Cluster consisting of 60 priority programs to be implemented through 2026.
Ladies and Gentlemen,
We need foreign investment, but we do not want to depend solely on it. We believe we can mobilize our own strength. We must not beg, kneel, or submit to other nations. We are a great nation, a brave nation, and a nation of fighters who succeeded in resisting and expelling colonial powers. We must believe in ourselves, our character, our culture, and the philosophy of our ancestors. We believe in mutual cooperation, supporting one another, and helping one another. That is our instinct and our culture, not hatred, suspicion, insults, or attacks against each other. That is not our democracy.
The economic model we follow is the Pancasila economic model, an economy based on belief in God, humanity, and national unity. Our economy must not focus only on individual regions. It must be people-centered, not an economy that oppresses the weak and leaves the poor even poorer. Our economy must embody social justice and serve all Indonesians.
The state must be present. The state must maintain balance, ensure both growth and equality, and take initiative to help people who are not yet empowered. The government must fulfill its role. The United States, Japan, China, and South Korea also implemented strategic policies with strong state involvement during crises, economic difficulties, and the early stages of industrialization.
Ladies and Gentlemen,
No developed country succeeds without excellent public services. The government must become excellent and help the private sector create jobs. No country can advance with a weak government or weak bureaucracy. No country advances without legal certainty. That is why my government has raised judges’ salaries, in some cases by nearly 300 percent.
I am proud because I received a report that our Chief Justice now earns more than the Chief Justice of Singapore. Even our most junior judges now earn more than junior judges in Malaysia. These are concrete steps toward creating clean institutions. We do not want our judges to be bribed or bought, and we do not want any other officials to behave in that way either.
Ladies and Gentlemen,
The steps we must take include improving not only export governance and our economic system, but also all of our institutions. We must remain committed to building a strong, professional, and corruption-free government. We must safeguard everything together.
Businesspeople complain about excessive illegal levies. I remind all agency heads, ministers, and leaders of government institutions to immediately clean up their bureaucracies. Do not hesitate. Take action against violators.
Once again, all government institutions must function properly. We must eliminate corruption, abuse of authority, and practices that obstruct our economy. I remind everyone once more that our customs must be improved. Minister of Finance, if customs leadership is incapable, replace them immediately.
The nation and the people demand swift action. We must not become a complacent and ineffective government that says, “We will deal with it later.” We must think proactively instead of postponing problems. If neighboring countries can issue business permits and environmental approvals within three weeks, why should it take us months or even three years? No one is irreplaceable. The people demand a proper and effective government.
Just because someone is a civil servant does not mean they cannot be dismissed. Otherwise, let them stay at home and feel ashamed before their wife and children. “Dad, why don’t you go to the office?” “Because I am no longer trusted due to corruption.” Imagine having to answer that question to your child. This is our shared challenge. I ask for support from all representatives of the people. This is for all of us, for our future, and for our children and grandchildren.
We must become a great nation. We do not want to remain weak forever. Therefore, I call on regional government leaders at every level to help us clean up our institutions. Do not think that just because you are now a regent or governor, we cannot monitor you from here. Technology is now advanced and we will quickly know if there are irregularities.
Ladies and Gentlemen,
I am saddened when officials still attempt corruption. They are quickly exposed now. We have technology and radar systems that can even detect objects underground. So, for those who hide bunkers, we will eventually find your wealth as well.
Ladies and Gentlemen,
I will use the most advanced technology available. Defense technology can detect underground weapons depots. Radar can detect the target. We will use such technology to locate hidden bunkers.
Do not underestimate technology. Those with vast plantations may think no official can inspect them, but now we have satellites. We do not even need physical inspections. We can photograph every tree individually. No matter how you attempt to deceive us, we will uncover your fraud.
Usually, these people have powerful backers. Their backers often wear green or brown uniforms. Correct? As for me… [inaudible]
Everyone now has smartphones. If there is misconduct by officials, I ask the people to record videos. Do not fight back. Simply record it and report it directly to me. I have been Indonesian for a long time.
Ladies and Gentlemen,
I believe most of our civil servants are good people and that only a small number are not. However, our ancestors already warned us that “a drop of indigo ruins a pot of milk.” Those few bad actors are the ones we must act against. This is what is commonly called the deep state. They feel untouchable because political leaders come and go. Ministers may serve only five years, or even two years if they fail, but these people remain in place, waiting for leaders to grow tired before requesting signatures.
Ladies and Gentlemen, honorable leaders and members of parliament,
With the support of this honorable council, the government I lead is determined to return to this podium next August to report the progress achieved ahead of our nation’s 81st independence anniversary.
Ladies and Gentlemen,
We have already achieved much. There are now 1,061 operational Red and White Village Cooperatives. By August, we aim to have at least 20,000 operational cooperatives, and by the end of the year more than 60,000. These cooperatives are the first supply chain in our republic that can be directly controlled by the government. They will simplify logistics and become engines of growth and prosperity at the grassroots level. They will circulate hundreds of trillions of rupiah in villages, districts, and regencies, reversing the outflow of money abroad and keeping it circulating locally.
To overcome the energy crisis, we are accelerating diesel production from palm oil. We are also studying gasoline production from palm oil. In addition, we will produce diesel and gas from coal. We can even generate cooking energy very cheaply from waste and corn stalks.
We will accelerate solar power generation. We have launched a plan to build 100 gigawatts of solar power within the next three years. We will combine this with the conversion of fuel powered motorcycles and cars into electric vehicles. God willing, we will eliminate our dependence on imported fuel and save valuable foreign exchange reserves.
Ladies and Gentlemen,
Thank you for the time and honor given to me. Once again, thank you for our cooperation. Not every party here is part of the government, and I respect and appreciate that. Our democracy needs checks and balances. I understand that the PDIP has made sacrifices by remaining outside the government. I actually want to thank them because they have contributed to our democracy. Personally, I prefer mutual cooperation. If all parties were in government, it would certainly be pleasant for me, but perhaps not healthy. Every leader must be willing to accept criticism and every executive branch must be overseen. Thank you for your oversight.
Sometimes at night before sleeping, my heart aches because some criticisms from PDIP members are often very strong. But eventually I realize that perhaps they have valid reasons. There is a proverb that says those who warn us, even if we dislike the warning, are actually saving us.
Thus, I thank you and respect your sacrifice. There are many facilities within the government. Ministers often ask me, “Sir, what should we do if there is a project or tender linked to PDIP?” Ministers, is that true? And what is my answer? There is no problem. If they win fairly, then they win fairly. We should not judge based on political background.
Ladies and Gentlemen, when I was not in power and had no authority, Ibu Mega also helped me in economic matters. I want to be open about this. At that time, I had no power and was practically unemployed. Ibu Megawati Soekarnoputri intervened and said, “If Prabowo wins the tender fairly, do not obstruct the process.” I now follow her example. As the President, we must not judge based on political background. If someone wins fairly, then they deserve what is rightfully theirs.
May Allah always provide us with guidance and protection in carrying out our sacred duties and the mandate entrusted to us by all the people of Indonesia. Aamin ya rabbal ‘aalamin.
Thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.
Shalom,
Salve,
Om santi santi santi om.
Happy National Awakening Day.
Let us continue the struggle of our founding fathers.
Merdeka!
Thank you.
(GWH/RI/JAS/LW)