{"id":327908,"date":"2026-07-20T09:57:38","date_gmt":"2026-07-20T02:57:38","guid":{"rendered":"https:\/\/setkab.go.id\/?p=327908"},"modified":"2026-08-31T10:05:14","modified_gmt":"2026-08-31T03:05:14","slug":"briefing-of-the-president-of-the-republic-of-indonesia-at-the-plenary-cabinet-meeting-at-the-state-palace-jakarta-july-20-2026","status":"publish","type":"post","link":"https:\/\/setkab.go.id\/en\/briefing-of-the-president-of-the-republic-of-indonesia-at-the-plenary-cabinet-meeting-at-the-state-palace-jakarta-july-20-2026\/","title":{"rendered":"Briefing of the President of the Republic of Indonesia at the Plenary Cabinet Meeting at the State Palace, Jakarta, July 20, 2026"},"content":{"rendered":"

Bismillahirrahmanirrahim.<\/em><\/p>\n

Assalamu\u2019alaikum warahmatullahi wabarakatuh,<\/em><\/p>\n

Good afternoon,<\/p>\n

May prosperity be upon us all,<\/p>\n

Shalom,<\/p>\n

Om Swastiastu,<\/p>\n

Namo Buddhaya,<\/p>\n

Greetings of virtue.<\/p>\n

Distinguished Vice President of the Republic of Indonesia Gibran Rakabuming Raka;<\/p>\n

Coordinating Ministers, Ministers, Heads of Agencies, Chairperson of National Economic Council, Presidential Advisors and Presidential Special Staffs, Attorney General, Head of the State Intelligence Agency, Chief of the Indonesian National Police, Commander of the Indonesian National Defense Forces, Chiefs of Staff of the Army, Navy, and Air Force, Vice Ministers, Vice Heads of Agencies, and all esteemed members of the Red and White Cabinet.<\/p>\n

First and foremost, as people of faith, let us never cease to offer our gratitude to Almighty God, the Most Gracious and Most Merciful, Allah Subhanahu wa Ta’ala for Muslims, the Lord of all creation. It is to Him alone that we pray and from Him alone that we seek help. We are grateful for His countless blessings, for the gift of health and life, and above all, for the peace and stability that we continue to enjoy as a nation, amid a world marked by conflict, war, and turmoil.<\/p>\n

Today, I have deliberately convened this Mid-Year 2026 Plenary Cabinet Meeting ahead of Indonesia’s Independence Day on 17 August 2026. By longstanding tradition, the President of the Republic of Indonesia delivers a state of the nation address several days before Independence Day to report on what the government has accomplished over the past year. This meeting also marks less than three months before we complete the second year of the mandate entrusted to us by the people. Time has passed remarkably quickly.<\/p>\n

Ladies and Gentlemen,<\/p>\n

We are holding this Plenary Cabinet Meeting to evaluate the work we have accomplished. I believe that not only all of you, but I myself, during these past years, have worked extremely hard, intensely, and quickly. Sometimes, because we have been so focused on working so hard and intensely, we have not fully realized just how much we have accomplished during the first two years of our administration. This is because we have faced enormous challenges, a world filled with uncertainty, while also confronting difficult realities that we must honestly acknowledge as shared challenges.<\/p>\n

We are not here to assign blame, nor are we here to compare one administration with another. Every era has its own government, every government has its own time, every generation has its own leaders, and every leader has their own period of service. That is not our purpose. Rather, as sons and daughters of this nation, as leaders, and as we are all leaders gathered here today: political leaders, technocratic leaders, cultural leaders, and community leaders, we have been given a mandate by the people to confront and solve problems. Therefore, we must never fear challenges, difficulties, or shortcomings.<\/p>\n

We fully understand that our teachers’ salaries remain inadequate. We know that employment opportunities are still insufficient. We recognize that extreme poverty continues to exist. These are realities we fully acknowledge. Indeed, this is precisely why we were entrusted with this mandate to address and resolve these problems. We understand that inequality persists within our society.<\/p>\n

However, I must honestly say that, as President, entrusted with this responsibility together with the Vice President, after taking our oath of office, I did not anticipate the true magnitude of some of these problems. We discovered distortions in our economy. Every year, significant amounts of our national wealth, amounting to thousands of trillions of rupiah, or hundreds of billions of U.S. dollars, have been flowing out of the country through practices such as under-invoicing, falsified trade reports. Under-invoicing refers to the falsification of trade documentation. These practices are simply unreasonable and profoundly unfair to our nation. These figures do not come from our own estimates. They come from international data, including reports by international institutions, such as the United Nations.<\/p>\n

The entire nation has felt the consequences. Economic actors, both at home and abroad, understand this reality. Everyone knows it. We witnessed the world’s largest producer of palm oil experiencing shortages of cooking oil for weeks, a fact that defied common sense.<\/p>\n

Ladies and gentlemen,<\/p>\n

We are confronting challenges of enormous scale and critical importance. If we allow hundreds of billions of dollars of Indonesia’s wealth to continue flowing abroad unchecked, we can only imagine what the future of our nation would look like.<\/p>\n

Therefore, let me remind you that we were entrusted with a mandate to solve these problems. We should be proud that, within this relatively short period, we have resolved many major issues and obstacles. By our latest count, we have successfully addressed more than 108, perhaps even 110, major issues within just over one year, or approximately 18 months of our administration. This is no small achievement. We remain humble. We do not seek praise or congratulate ourselves. We must never become arrogant or complacent. Humility is part of our national character. As the Javanese saying goes, ojo dumeh<\/em>, never become conceited simply because you have achieved success.<\/p>\n

However, when we have achieved meaningful results, we must also acknowledge them. No other nation will respect us if we ourselves fail to respect our own nation. A great nation honors and appreciates its heroes. A great nation recognizes the challenges it faces while taking pride in the achievements it has earned. Ladies and gentlemen, without fully realizing it, because we have been so busy working, we have already accomplished achievements that should make us proud.<\/p>\n

Ladies and gentlemen,<\/p>\n

Every nation and every economy must be measured, and we have indicators. We must ask ourselves: can a nation provide food for its people? This is the most basic responsibility. What is the purpose of independence? What is the purpose of having the Unitary State of the Republic of Indonesia if we cannot provide the most fundamental necessity of civilization?<\/p>\n

That necessity is food.<\/p>\n

If some intellectuals argue that there are things more important than feeding hungry people, they are entitled to their opinion. But what I know, from thousands of years of human civilization, is that no society has ever survived without food. Civilizations perish when they can no longer feed their people.<\/p>\n

To ensure food security, we need water, a well-preserved environment, fertile land, and sound public policies.<\/p>\n

We must therefore ask ourselves: Are food prices under control? Are fertilizers available and affordable for our farmers? Are schoolchildren receiving nutritious meals at school?<\/p>\n

Ladies and gentlemen,<\/p>\n

I have been criticized because I want to provide nutritious meals for Indonesia’s children, for pregnant mothers and for the elderly. This has been labeled as wasteful spending. Yet, while trillions of rupiah have disappeared from Indonesia every year for 34 years, there has been little public criticism. Few experts protested. Few investigations were conducted.<\/p>\n

We seek to feed our children, when at least one-quarter of them suffer from stunting, and many others arrive at school without having eaten. Yet we are accused of extravagance. We are told the economy will collapse, the stock market will crash, and the currency will weaken, all because we are supposedly spending too much.<\/p>\n

Ladies and gentlemen,<\/p>\n

I firmly believe that the economic and political foundations laid down by the founding fathers of our nation are fundamentally sound. The 1945 Constitution was born out of a long struggle, forged through the experience of colonialism and imperialism. What is imperialism? Imperialism is the extraction of one nation’s wealth by another. It has weakened our nation and deprived us of the ability to determine our own destiny.<\/p>\n

Our founding fathers, after a long and difficult struggle culminating in armed resistance, developed a national philosophy, Pancasila. Pancasila is a comprehensive and integrated philosophy that also embodies an economic vision, an economy founded on justice. This vision is clearly enshrined in the 1945 Constitution, which we are implementing today.<\/p>\n

Article 33 states that “the national economy shall be organized as a common endeavor based upon the principle of family.”<\/em> This is not merely a slogan or a rhetorical expression.<\/p>\n

It means that every citizen is part of one national family. No group should exploit another. No single group should monopolize the nation’s wealth while others are denied the opportunity to prosper. That is the true meaning of an economy based on the principle of family.<\/p>\n

The Constitution also mandates that “branches of production that are important to the state and affect the livelihood of the people shall be controlled by the state.”<\/em> This provision is clear and requires no reinterpretation.<\/p>\n

Furthermore, “the land, the waters, and the natural resources contained therein shall be controlled by the state and utilized to the greatest benefit of the people.”<\/em><\/p>\n

Ladies and gentlemen,<\/p>\n

We must also remember Article 34 of the Constitution.<\/p>\n

“The poor and abandoned children shall be cared for by the state.”<\/em><\/p>\n

This is exactly what we are implementing. Through Article 33, we safeguard our economic resources so that the state has the means to fulfil the obligations outlined in Article 34. We must never allow children born into poverty to remain trapped in poverty. We must never allow children to grow up without hope of receiving an education. These are commitments we have begun to fulfil.<\/p>\n

The Constitution also mandates that “the state shall develop a social security system for all citizens and empower the weak and underprivileged in accordance with human dignity.”<\/em><\/p>\n

Furthermore, “the state shall be responsible for providing adequate healthcare services and public facilities.”<\/em><\/p>\n

Ladies and gentlemen,<\/p>\n

This is why we have governed with unwavering determination and hard work. I extend my sincere appreciation to every member of the Cabinet. Many of you have carried out your responsibilities without supervision, while I concentrated on our urgent priorities during these first two years. I have seen your initiative. Together, we have achieved accomplishments that I believe are worthy of pride. Few governments around the world have achieved what we have accomplished.<\/p>\n

Our challenges remain significant. Our aspirations are even greater. Much work still lies ahead, and our journey is far from over. Yet today we can already see tangible progress.<\/p>\n

Many predicted that our government would collapse this month. Instead, each passing day has made us stronger. The world is experiencing conflict. Many countries are anxious about food security. Indonesia has already achieved food self-sufficiency ahead of many others. In the energy sector, we continue to face challenges, but we are better prepared than many nations. This is not a reason for complacency, nor should it make us self-satisfied. Absolutely not.<\/p>\n

Ladies and Gentlemen,<\/p>\n

Regarding the achievements of the Red and White Cabinet in resolving 110 to 112 issues, I have asked that the report be distributed to all of you. Hopefully it is available. Have the books been distributed? Have they? Yes, distributed\u2014not merely prepared. I want them handed out. They should already be in front of the Ministers and Vice Ministers. Please distribute them now, if they are available.<\/p>\n

Ladies and Gentlemen,<\/p>\n

Our achievements are significant. History will record them. As I mentioned earlier, we have achieved food self-sufficiency in eight major food commodities. Our national rice reserves are the highest in the history of the Republic of Indonesia. The Farmers\u2019 Terms of Trade Index is also at its highest level in our nation’s history.<\/p>\n

We have successfully produced B50 biodiesel, diesel fuel containing 50 percent palm oil. We no longer import diesel fuel. At the time, there was considerable opposition. Some claimed that engine manufacturers would not support us, etc. The leaders of a nation of 287 million Indonesians are constantly being told to govern through fear, fear of the market, fear of this, fear of that, fear of rating agencies.<\/p>\n

But we believe in our own strength. We believe in fundamental principles. These fundamentals are not based on personal preferences; they are based on the world’s experts. They are based on the United Nations\u2019 Sustainable Development Goals (SDGs).<\/p>\n

The United Nations has warned of the growing threat of hunger\u2014food, energy, and water insecurity. Their first Sustainable Development Goal is No Poverty. Yet when we seek to help our poor citizens, we are accused of wastefulness. Meanwhile, fraud and smuggling are met with silence. Large corporations continue to receive loans worth trillions, while ordinary people are told they deserve nothing.<\/p>\n

The second SDG is Zero Hunger. There should not be a single Indonesian who goes hungry. I have instructed our officials to learn from other countries. We should not be ashamed to learn. Send teams to India, Brazil, China, Vietnam, and other countries to study how they have successfully eliminated hunger. Indonesia, as a G20 member, cannot allow any of its people to suffer from hunger.<\/p>\n

The third SDG is Good Health and Well-being.<\/p>\n

The fourth is Quality Education.<\/p>\n

The fifth is Gender Equality.<\/p>\n

The sixth is Clean Water.<\/p>\n

The seventh is Affordable and Clean Energy.<\/p>\n

The eighth is Decent Work and Economic Growth.<\/p>\n

The ninth is Industry, Innovation and Infrastructure.<\/p>\n

The tenth is Reduced Inequalities.<\/p>\n

Ladies and Gentlemen,<\/p>\n

These are what we are working on. Therefore, do not hesitate. We are on the right path. We are pursuing a rational course. What is irrational is illegal mining, illegal plantations, illegal logging, smuggling, under-invoicing, and transfer pricing. Those are acts of fraud. They are criminal offenses. Those are what is truly irrational. We must not reverse right and wrong. As has often been said in difficult times, what is right is condemned, while what is wrong is justified. That must not happen. We are confident that we are on the right path.<\/p>\n

Ladies and Gentlemen,<\/p>\n

I believe one of our greatest achievements, one that history will remember, is that, for the first time in Indonesia’s history, we have established a sovereign wealth fund called Danantara. Danantara stands for Daya Anagata Nusantara. Daya<\/em> means energy, Anagata<\/em> means the future, and Nusantara<\/em> refers to our homeland.<\/p>\n

Danantara is a sovereign wealth fund in which the nation’s savings and state-owned assets are consolidated and professionally managed. It serves as a strategic reserve and a source of strength for Indonesia’s future, for our children, grandchildren, and generations to come. Alhamdulillah<\/em>, for the first time in our history, we now possess a sovereign wealth fund whose assets are valued at more than US$1 trillion. Previously, many of these assets could not be effectively monitored, and we did not fully understand the true extent of our national wealth.<\/p>\n

Ladies and Gentlemen,<\/p>\n

I served in the previous administration under President Joko Widodo. At that time, I followed developments, but I did not yet have a full understanding of the numbers. Even as a cabinet member, I believed Indonesia had approximately 300 to 350 state-owned enterprises (SOEs). I was shocked when, after becoming President, I received a report showing that there were actually 1,077 SOEs. And we must continue verifying these figures because many SOEs have subsidiaries, which in turn have sub-subsidiaries, and even further layers of affiliated companies.<\/p>\n

I would like to express my appreciation to the leadership of Danantara. During its first 18 months, they have already succeeded in reducing that number. From 1,077 SOEs, they will have closed, consolidated, or merged 250 enterprises by the end of this month, July 31. The total has already been reduced by 250. That deserves applause.<\/p>\n

I believe we should ask the Chairman of the National Economic Council (DEN), Mr. Luhut, to confirm this globally. Is there any country in the world that has closed or consolidated 250 state-owned enterprises within a single year? Their commitment is even more ambitious. They reported to me that by December 31, 2026, the total number of SOEs will be reduced from 1,077 to no more than 350.<\/p>\n

They also reported that by eliminating the first 250 SOEs, Indonesia will save approximately Rp50 trillion in annual overhead costs, including directors’ salaries, commissioners’ salaries, office rentals, electricity, transportation, administrative expenses, and meetings. By the end of December, I believe those savings could reach Rp70 to Rp80 trillion. I extend my appreciation to the leadership of Danantara.<\/p>\n

Another important achievement concerns the Abadi Masela Gas Project, which had been stalled for 28 years. During my visit to Tokyo, I met with the executives of the Japanese companies involved, particularly INPEX. I politely but firmly asked them, “Are you still interested? If not, we will allocate the project to another company.”<\/em>As Indonesians, we are courteous people. It was not an ultimatum; it was an earnest appeal. I said, “Your Excellency, is Japan still interested? Indonesia urgently needs energy and foreign exchange earnings.”<\/em><\/p>\n

After returning home, I also pressed the Minister of Energy and Mineral Resources. I told him, “If there is no progress within six months, revoke the permit.”<\/em> We no longer tolerate inactivity. Whether it is land-use rights (HGU), building-use rights (HGB), business permits, or other licenses, if there is no activity for two years, the permit will be revoked.<\/p>\n

To address practices such as under-invoicing, false reporting, and other fraudulent activities, I convened a meeting of the Financial System Stability Committee (KKSK), bringing together the Minister of Finance, Bank Indonesia, the Financial Services Authority (OJK), our economic team, the Chairman of DEN, and several economic advisers at the Merdeka Palace. I asked them directly: “Are we willing to allow hundreds of billions of dollars from Indonesia’s natural resources to continue flowing overseas?”<\/em>. They unanimously answered, “No, Mr. President. We cannot allow it to continue.”<\/em><\/p>\n

We then discussed how to stop it. The proposal that emerged was to establish a single-channel export system for Indonesia’s strategic commodities. I reminded everyone that all of these commodities belong to the Indonesian people. Our Constitution clearly states that the land, waters, and natural resources contained therein belong to the nation. Nickel, rubber, palm oil, coal, gold\u2014all of them belong to Indonesia. Accordingly, we introduced a single-window export system and established PT Danantara Sumberdaya Indonesia (PT DSI). Before the House of Representatives, on 20 May 2026, coinciding with National Awakening Day, we officially announced the establishment of PT DSI. The company began full operations on July 1, 2026 as a state instrument to strengthen governance and consolidate exports of strategic commodities.<\/p>\n

Ladies and Gentlemen,<\/p>\n

We created this single-channel export system so that the government knows exactly how much is being exported, to whom it is sold, what the actual prices are, and how much foreign exchange should rightfully return to Indonesia. That is its purpose. As expected, there was criticism and skepticism at first. But ultimately, the international community recognized that this was the right step for Indonesia, ladies and gentlemen.<\/p>\n

Certain groups constantly hope Indonesia will fail. I do not understand them. I honestly do not know which nation they truly belong to. They continually predict that Indonesia will collapse and emphasize only negative outcomes. In my view, those are not predictions; those are prayers. They are praying for Indonesia to fail. They are praying for Indonesia to remain poor. That makes me seriously question where their patriotism lies and whether they truly love this country.<\/p>\n

Ladies and gentlemen,<\/p>\n

With a single-window export system for natural resources, we are conducting a transition phase, and we expect full implementation on 1 September 2026. This process will allow us to clearly track where our funds are going.<\/p>\n

For example, palm oil has long been exported from Indonesia at around Rp17,000 per kilogram for CPO. (Yes, Minister of Agriculture?) Actually, the contract price is about Rp15,000 per kilo. Meanwhile, the international price, for example in Rotterdam, is about Rp27,000. Our selling price is around Rp14,000\u2013Rp15,000, while the true price is Rp27,000. Who benefits from the Rp13,000 difference? Almost 50 percent.<\/p>\n

This kind of practice pains us. Companies export from Indonesia at Rp14,000 here, and on the way to Europe the deal or contract allegedly changes, so the price there becomes Rp27,000. We lose roughly 50 percent of our wealth in a single transaction.<\/p>\n

We are now taking a firm stance. I have received a report from Mr. Rosan, CEO of Danantara, that after just one month and two weeks of operation, PT DSI has managed foreign exchange inflows of more than US$10.5 billion. That is in one month and two weeks.<\/p>\n

From the incoming figures, before PT DSI existed, the gap between the price sold in Indonesia and the international selling price was at least around 30 percent, approaching 40\u201345 percent. After PT DSI began operating, those prices have almost aligned, as shown in the graphs I have seen. Because we are firm. We will not allow this practice to continue. It is fraudulent. We will revoke all permits for those who continue these practices. I will not show favoritism. We will revoke permits for anyone who refuses to comply with the law of the Republic of Indonesia.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

We must not become complacent. But we can see the effects of our recent measures. Previously, some threatened us with global rating agencies, saying they would give Indonesia a poor grade and downgrade us to discourage investment.<\/p>\n

We are not afraid. In fact, Standard & Poor\u2019s (S&P) has publicly stated that the establishment of PT DSI is the right move. They said it is an appropriate step for Indonesia and that it can increase our revenue. They did not lower our outlook; our outlook remains stable. We retain an investment-grade rating as an emerging market. We should not be satisfied simply with the ratings of other countries.<\/p>\n

Once again, trust in our own strength. We live in a global world, but we must believe in our strength. Whatever happens, our food supply is secure, our energy is sufficiently strong, and our water resources are abundant. What remains is management, and some regions still need improvement. Our fundamentals are strong, and our land is sufficient. We have demonstrated that we can convert swamps into rice paddies, turning previously unused wetlands into productive land.<\/p>\n

We are beginning to be recognized and we will prove ourselves. I am confident we will become a global food estate. I do not know in whose time this will be fully realized, but I believe it will happen. Many predict we will become the fourth or fifth largest country in certain respects. Sometimes we ourselves, not lack of humility, but lack of confidence.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

We are on the right path, but we remain vigilant. We must self-correct. Our efficiency is still lacking, and we have too many regulations. I emphasize here that we must simplify government. We have started or are piloting government digitalization through GovTech and other programs. I hope the single national identity card can be implemented optimally. We will continue to simplify ministerial regulations and ensure they are aligned with the spirit of deregulation and efficiency.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

One of our achievements is that we now have a social protection system that, in my view, is among the strongest in the world. If we continue these programs, many of which were built by previous administrations, we will maintain and strengthen that achievement.<\/p>\n

I always acknowledge that nation-building and national transformation are not done in pieces. This is a long march. Everything we have, from Bung Karno, from Mr. Soeharto, from Mr. Habibie, from Gus Dur, from Megawati, from President Susilo Bambang Yudhoyono, and from President Jokowi, is the result of their hard work and their governments\u2019 efforts.<\/p>\n

Our duty is to preserve, develop, and improve what has been achieved. When there are difficulties, shortcomings, or mistakes, these are mistakes of the nation, not of individuals or a single regime. Sometimes our nation makes errors.<\/p>\n

In the past many experts and intellectuals, almost 99 percent, enthusiastically promoted neoliberalism and capitalism. Perhaps, President Soeharto was surrounded by advisors who recommended those policies, and later leaders followed. That is not necessarily wrong. But now, looking at the experience. Even in the United States and Europe, the neoliberal approach has been questioned or abandoned. Should we continue it?<\/p>\n

Therefore, I stress that we do have a social protection system, a welfare state, that is among the strongest in the world. When we review the programs one by one, many were implemented by earlier presidents and governments. I urge us not to develop a culture of constantly finding faults and vilifying leaders. Even if leaders are elderly, no longer in office, or have left, continuing to vilify them is not a healthy culture.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

Our efforts to reduce and address poverty are substantial. We have the Family Hope Program (Program Keluarga Harapan). It covers 10 million households in the bottom deciles 1 to 4, meaning roughly 40 million Indonesians receive between Rp75,000 and Rp250,000 per month.<\/p>\n

The People\u2019s School program supports children from the poorest deciles, with total assistance of Rp4 million per year. The Indonesia Smart Card (Kartu Indonesia Pintar) assists 1.2 million university students in receiving living support of Rp800,000 to Rp1,400,000 per month, exempt from tuition charges (UKT), and the aid is paid directly to the universities. The Indonesia Smart Program (Program Indonesia Pintar) reaches 22,100,000 students from the lowest deciles 1\u20134. Our targeting of the poor is significant.<\/p>\n

The Food Basic Card (Kartu Sembako) provides Rp200,000 per month to 18,250,000 households. When multiplied by four persons per household, that approaches 40 million people. The ATENSI social assistance reaches 83,000 beneficiaries.<\/p>\n

The National Health Insurance (Jaminan Kesehatan Nasional) covers 96,800,000 people, nearly 100 million, about 20 times the population of Singapore and 3.5 times that of Malaysia. We provide a national guarantee of health coverage.<\/p>\n

The Social Economic Empowerment Assistance and the Self-Help Housing Stimulus provide Rp20 million per house for 400,000 beneficiaries. I will ask the Minister of Housing and the Minister of Social Affairs to review whether beneficiary numbers can be increased so the index can be reduced. Perhaps by providing building materials instead of cash, such as cement, roofing, timber, or light-gauge steel, so more people can benefit the program. The Housing Liquidity Facility (FLPP) provides Rp727,000 per month for 1,877,747 households.<\/p>\n

Disaster assistance is substantial as well, about Rp30 trillion per year. LPG subsidies reach 66,400,000 households, twice the number in Malaysia and twelve times that of Singapore. This is something to be proud of. Ministers and the Government should take pride in these achievements.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

Without always realizing it, we should appreciate what we have achieved. I always say: let us recognize these achievements as our collective accomplishments from the era of Bung Karno until now.<\/p>\n

Fuel subsidies and compensation for diesel reach 484,000 households. Compensation for Pertalite is provided at Rp89,000 per month to 33,787,364 households, nearly 34 million. Electricity subsidy and compensation of Rp130,000 to Rp150,000 per month reach 87 million households, almost the entire population of Indonesia.<\/p>\n

Rail fare discounts benefit 1.3 million passengers. Shipping transport discounts reach nearly 500,000 beneficiaries. Food assistance provides 10 kilograms of rice and 2 liters of cooking oil for three months to 33.24 million families in the lowest deciles 1\u20134.<\/p>\n

Which country shows these kinds of programs like ours? Certainly, some countries may do more, but for Indonesia this is significant. Do not underestimate our progress. We are strong. We are rich, and we will become richer. We will grow wealthier. We refuse to be naive any longer. We have been too ingenuous, too trusting, too kind. Are there any journalists here? Still present?<\/p>\n

The Free Nutritious Meal program (Makan Bergizi Gratis) covers 74,560,000 beneficiaries, including students, pregnant and breastfeeding mothers, toddlers, and the elderly. Free health checks have reached 130,800,000 people. This is the first time we have provided such widespread free health checks. We examine people to understand their conditions and what actions are necessary. We discovered that many citizens suffer from dental problems, a sign that we need more dentists. But how can we address what we do not know?<\/p>\n

Our affirmative programs include internships for 150,000 recent university graduates (S1) for six months. I received a report from the Minister of Manpower that roughly 60 percent of interns secure employment at their internship placements. The Sekolah Unggul Garuda program provides Rp9,500,000 per month for exceptionally talented students from low-income families, with the aim of preparing them for the highest-quality programs domestically and abroad. To date, four Sekolah Unggul Garuda schools are planned. Professor Brian, what is the total number of Garuda high schools planned? The LPDP scholarship program supports 23,289 students for study at home and abroad, alongside other scholarships such as the undergraduate Garuda scholarships, the University of Defense undergraduate scholarships, and the Taruna Nusantara School scholarships.<\/p>\n

Fertilizer subsidies amount to Rp334,166 per month, benefiting 14,205,757 farmers and aquaculture cultivators. Interest subsidies for KUR loans provide Rp500,000 per month to 6,084,205 debtors. Free halal certification has reached 1,350,000 micro and small enterprises. I list these programs in detail so we understand what we have accomplished.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

We understand that our future depends on the quality of our people, the quality of our children, their physical health, and their education. Nutrition is vital, and so is improving education quality. Our education system has many gaps. Indonesia is very large and has more than 288,000 schools, many in remote locations. One of our initiatives is the digitalization of education. We have distributed interactive flat panels, smart screens, to schools across Indonesia. One panel per school last year, and this year we plan to add panels for three classrooms per school. I expect that by the end of 2026, we will deliver approximately an additional 700,000 smart panels to schools across Indonesia, or in the first semester of 2027.<\/p>\n

What does this mean? It means students and teachers throughout Indonesia will have access to the best learning materials. We just received good news from the United Nations. The International Telecommunication Union awarded Indonesia the highest recognition among 122 countries in the categories of e-government and digitalization of education. Our apps, implemented by the Ministry of Primary and Secondary Education (Kemdikdasmen), the Rumah Pendidikan portal integrated with the interactive flat panels we distributed, have been used by more than 6.9 million users, offering 4,843 free learning resources and supporting hundreds of thousands of teachers in remote, frontier, and outermost regions.<\/p>\n

This UN recognition proves that our education digitalization is acknowledged globally. We have made a leap forward. We are not easily satisfied. The journey continues. We want to improve all our schools. This year we will complete renovations for 77,000 schools. Next year our target is 100,000, and another 100,000 in 2028. We hope that by 2029 all Indonesian schools will have been renovated. The funds will be transferred directly to school principals and monitored by parent and teacher committees. The results so far have been very good. Minister of Education and Culture, are you here? Did you receive positive feedbacks? Thank you.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

Government digitalization is imperative. We must not have dozens of applications that do not communicate with one another. We must not require citizens to enter the same data repeatedly. We must not force people to spend money merely to prove that they are poor. According to the National Economic Council\u2019s report, digitalization of social assistance programs has been implemented in 43 regencies and cities across 26 provinces. About 1 million households are registered so far, against a target of 12.5 million households. Previously, a family might spend around Rp150,000 to process various documents and apply for assistance. Now that process can be done free of charge. This is a direct benefit of digitalization. But, of course, we must go further.<\/p>\n

Social data, population data, education data, health data, employment data, housing data, and beneficiary data must be integrated with strong security protections. We must prevent capable people from receiving assistance because their records are outdated. We must not let poor families miss out on aid simply because they do not know officials or do not understand bureaucracy. If our systems are accurate, achieving zero extreme poverty becomes far more attainable.<\/p>\n

We have also established public service malls in 313 regencies and cities. In one location, the public can access up to 150 types of services. This is progress. However, all services that can be digitized should be available online. Citizens should not have to queue for hours or move from office to office. The government must come to the people through technology. I want Indonesia to have world-class digital government.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

In the booklet distributed to you, we recorded 108 chronic national problems that we resolved through various decisions in the first 18 months of the administration. Now that our government has been in office for 20 months, we have of course resolved even more issues. We have achieved the accomplishments I mentioned earlier.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

Another achievement is the establishment of a bullion bank. For the first time in the history of the Republic of Indonesia, we have a bullion bank, which now manages 153 tonnes of gold. Mr. Rosan, what is the value of 153 tonnes of gold? About US$20 billion. Thus, within one year, the bank we established a year ago now manages gold valued at US$20 billion. This is an economic strength recognized globally, and I believe it will increase in the coming years. Quietly, we have achieved world-scale accomplishments. You may check which bullion bank manages 153 tonnes of gold within a year.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

Judges\u2019 salaries, which had not increased for 12 years, have been raised. For some grades the increase is nearly 300 percent, about 280 percent. I announced this yesterday. The Chief Justice reported to me that the Chief Justice of Singapore informed him that the remuneration of the Chief Justice of Indonesia is now above that of Singapore\u2019s Chief Justice. Also, the average salary of Indonesia\u2019s most junior judges is now above the average junior judge salary in Malaysia. This is meaningful. We want our judges to live well. I have also instructed the Minister of Housing to prioritize housing for judges across Indonesia. Judges, registrars, and court staff number fewer than nine thousand people, so they can be prioritized for housing. We do not want our judges to live poorly. We do not want judges to lack dignity or honor. We do not want judges to be susceptible to bribery.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

Non-performing micro, small, and medium enterprise (MSME) loans, which for many years have hindered our small entrepreneurs from continuing their businesses, were resolved starting in November 2024. We granted debt relief to them. Also, from the program to build 5,000 village bridges demanded by rural communities, we have completed 1,000 bridges as of July 2026. The remaining bridges will be finished soon. By the end of 2026, according to the Chief of Staff of the Indonesian National Defense Forces as Task Force Chairperson, the 5,000 bridges will be completed. Good. Thank you.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

We have established 100 Red-and-White Fisher Villages (Kampung Nelayan Merah Putih). Our target is that by year-end more than one thousand fisher villages will start their operations.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

We have begun operating over one thousand Red-and-White Village Cooperatives (Koperasi Desa Merah Putih). After only one and a half months of operation, there are many shortcomings. Some places still lack reliable electricity or water, and some lack internet access. However, I have received reports that by the end of this year we can complete 30,000 village and subdistrict cooperatives (30,000 in total). I believe only a few countries have succeeded in establishing 30,000 cooperatives in one and a half years. These are operating cooperatives, not organizations existing only on paper. Each cooperative will have a warehouse and a cold room so that farmers\u2019 harvests will not spoil and can be stored. Each cooperative will have two trucks (initially one, with the second to arrive gradually). Each cooperative will run retail outlets, sell affordable generic medicines, operate workshops to repair agricultural machinery, and distribute all subsidized goods. Subsidized goods belong to the people and must not be traded for profit.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

For the first time in the Republic\u2019s history, the Government will have direct oversight of a supply chain and retail chain from the center down to the village level. We will no longer be subject to blackmail or sudden shortages caused by hoarding at critical times. Whether for Eid al-Fitr or New Year, goods will not become scarce because we will know where surpluses and shortages exist. If one village has an egg surplus while another lacks eggs, we will be able to identify and address it. This capability will enable us to control inflation better and more quickly.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

I would like to explain a little more specifically about the Red-and-White Village Cooperatives. The original intention was to eliminate loan sharks. Loan sharks survive by preying on our farmers. With interest at 1 percent per day, it is impossible for farmers and producers to recover and grow. That was the original purpose. But we have also found that this supply chain arrangement can generate savings of hundreds of trillions of rupiah.<\/p>\n

Please show that slide: the supply chain for basic goods trade. As we can see, farmers sell to collectors, collectors to distributors, distributors to sub-distributors, sub-distributors to wholesalers, and wholesalers to retailers, one, two, three, four, five steps before the goods reach consumers. After research by the Minister of Agriculture, the profit taken by these intermediaries is 30\u201340 percent. Based on calculations, that amounts to Rp313 trillion. So only 30 percent is enjoyed by farmers, about one-third, 30 percent is enjoyed by consumers, and 40 percent is taken by middlemen. It is difficult for the people to prosper under such conditions.<\/p>\n

With the Red-and-White Village Cooperatives (KDMP), the margin is only about 5\u201310 percent. I think a 5 percent margin for the cooperative is sufficient, so the rest can be enjoyed by farmers and consumers. This is long-term economic security. We can imagine that if Rp250 trillion circulates among the people. There is a concept economists have taught me (I am not an economist myself, I have only learned this from economists) called the philosophy of money. If one rupiah circulates in society, the economic activity it generates can be two, three, or even four times larger. If it is at least two times, then at least Rp500 trillion to Rp600 trillion would circulate among our people. If it is three or four times, we can imagine the scale.<\/p>\n

\n

Ladies and gentlemen,<\/p>\n

I believe this is highly strategic. Of course, a major undertaking like this will certainly face many shortcomings. The same goes to MBG. There are shortcomings, abuses, and irregularities, but we act quickly and make corrections. We regret that there are individuals who seek to enrich themselves from a program or effort that is so large and so noble for the people. But if this is indeed a disease, then we must cure it. We take action. We will continue to take action.<\/p>\n

Once again, I have said many times that we will not show favoritism, we will not discriminate, and we will not fail to act against misconduct. Of course, we need judgment in deciding when, where, and how to act, because we want to heal Indonesia. If someone, for example, has cancer, a shortcut might be to cut off the hand or the foot. But with precision, therapy, technology, and care, we can address it without causing too much harm to the body. It is the same here.<\/p>\n

I have learned that a country\u2019s economy is like our body. If we take good care of our body, its economy will be healthy. Likewise, if the economic body is properly maintained, it will be healthy. But if it is poisoned by markups, corruption, fraud, under-invoicing, transfer pricing, and collusion, games between bureaucrats and businesspeople, or between banks that keep extending credit only to the same people, it becomes damaged and sick. That is what we are repairing now.<\/p>\n

I believe, ladies and gentlemen, that so many major decisions have been taken. I am setting this out in this plenary session as a milestone for evaluation: what we have done and what we still need to do. We have reached this point to strengthen our spirit. It has turned out to be true. It has turned out that when the policy is right, the intention is right, the direction is right, and it aligns with the nation\u2019s philosophy, common sense, and the sincere intention to serve the people, the results are real. The world has begun to recognize this.<\/p>\n

That is my introduction. Now I invite our friends from the media to enjoy coffee outside the room.<\/p>\n

(RD&EW\/LW)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Bismillahirrahmanirrahim. Assalamu\u2019alaikum warahmatullahi wabarakatuh, Good afternoon, May prosperity be upon us all, Shalom, Om Swastiastu, Namo Buddhaya, Greetings of virtue. Distinguished Vice President of the Republic of Indonesia Gibran Rakabuming Raka; Coordinating Ministers, Ministers, Heads of Agencies, Chairperson of National Economic Council, Presidential Advisors and Presidential Special Staffs, Attorney General, Head of the State Intelligence […]<\/p>\n","protected":false},"author":88,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1919],"tags":[],"class_list":["post-327908","post","type-post","status-publish","format-standard","hentry","category-remarks"],"acf":[],"yoast_head":"\nBriefing of the President of the Republic of Indonesia at the Plenary Cabinet Meeting at the State Palace, Jakarta, July 20, 2026 - Sekretariat Kabinet Republik Indonesia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/setkab.go.id\/en\/briefing-of-the-president-of-the-republic-of-indonesia-at-the-plenary-cabinet-meeting-at-the-state-palace-jakarta-july-20-2026\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Briefing of the President of the Republic of Indonesia at the Plenary Cabinet Meeting at the State Palace, Jakarta, July 20, 2026 - Sekretariat Kabinet Republik Indonesia\" \/>\n<meta property=\"og:description\" content=\"Bismillahirrahmanirrahim. 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Assalamu\u2019alaikum warahmatullahi wabarakatuh, Good afternoon, May prosperity be upon us all, Shalom, Om Swastiastu, Namo Buddhaya, Greetings of virtue. 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