Remarks of the President of the Republic of Indonesia at the Digital Handover of the Budget Implementation List (DIPA) and the 2025 Regional Transfer Allocation (TKD), and the Launching of the Electronic Catalog Version 6.0, State Palace, Jakarta Province, Tuesday, December 10, 2024
Bismillahirrahmanirrahim.
Assalamu’alaikum warahmatullahi wabarakatuh.
May prosperity be upon us all,
Shalom,
Om Swastiastu,
Namo Buddhaya,
Greetings of virtue.
Distinguished Vice President,
Distinguished Leaders of State Institutions: Speaker of the People’s Consultative Assembly (MPR), Speaker of the House of Representatives (DPR), Speaker of the Regional House of Representatives (DPD), Head of the Audit Board (BPK), Chief Justice of the Constitutional Court (MK), Chief Justice of the Supreme Court (MA), Head of the Judicial Commission, Coordinating Ministers, Ministers of the Read and White Cabinet, Heads of Agencies, Chairperson of the National Economic Council, Attorney General, Commander of the Indonesian National Defense Forces (TNI), Chief of the Indonesian National Police (Polri), Head of the State Intelligence Agency (BIN), Chairperson of the Corruption Eradication Commission (KPK), Chairperson of the General Elections Commission (KPU), Chairperson of the Election Supervisory Body (Bawaslu),
Distinguished Governors, and esteemed guests.
After nearly two months of the Red and White Cabinet’s tenure, today we enter an important phase of our governance: the Handover Ceremony of the Budget Implementation List (DIPA) and the Regional Transfer Allocation for the 2025 Fiscal Year. This event symbolizes the commencement of the 2025 State Budget (APBN) implementation. Simultaneously, we also witness the Launching of the Electronic Catalog Version 6.0.
Ladies and Gentlemen,
We are determined to implement national development as part of our efforts to continue the transformation of the nation towards making Indonesia an advanced, prosperous country—namely Golden Indonesia 2045.
I have reminded everyone that the global geopolitical and geo-economic landscape remains fraught with uncertainty, marked by tensions, wars, and fierce competition among major powers.
Ladies and Gentlemen,
This situation creates economic uncertainty and a tendency for economic slowdowns among large nations and economic blocs. While vigilance is crucial, we should be grateful that Indonesia remains peaceful. Peace and stability should not be taken for granted, as they are exceptional in today’s global context. We see every day that countries we consider wealthier, more advanced, and more technologically capable than us are experiencing instability. Even nations we regard as more developed are marked by military emergencies and other tensions. Furthermore, we must remain vigilant, as at any moment, the situation could worsen beyond what we are currently witnessing.
Ladies and Gentlemen,
The 2025 State Budget is devised to maintain stability, inclusivity, and sustainability with prudence. While we aim high, economic management must remain prudent and well-planned.
Ladies and Gentlemen,
Public spending must be efficient, and inefficiencies must be reduced across all areas. As we face unpredictable challenges, we must tighten our belts and minimize budget leakage. I am determined to combat corruption at all levels and call on regional leaders to work collaboratively with the Central Government for the people. Every penny must reach those in need, and we must eliminate unproductive and wasteful expenditure.
I urge all parties to reduce expenditure on ceremonial activities and minimize excessive studies, seminars, and similar initiatives. Now is the time to address issues directly.
Our strategy begins with ensuring food security. I firmly believe that no country can be truly secure if it cannot guarantee food for all its citizens. Therefore, food security is our top priority. I would like to express my gratitude to everyone involved, as we have successfully managed to control inflation to this day. Despite a year full of climate challenges—El Niño, followed by La Niña, prolonged drought, and now relentless rainfall—we have achieved remarkable rice production. This success is the result of the hard work of all Ministries/Agencies and the support of regional governments.
Ladies and Gentlemen,
I reiterate once again: we must achieve self-sufficiency in food. We must establish national food reserves, provincial food reserves, regency food reserves, and village food reserves. This is the wisdom of our ancestors, practiced for thousands of years. Each village used to have its own communal food storage, a tradition upheld across all ethnic groups and regions in the archipelago. Village granaries are a legacy from our forebears. Every village must secure land for its reserves. Every slope, every hill, and every piece of land in the village must be utilized effectively. Only through self-sufficiency will we be safe and strong.
Energy self-sufficiency is also a priority in our transformation strategy. We are grateful to the Almighty God for blessing us with extraordinary resources. Perhaps only three countries in the world—Brazil, Congo, and Indonesia—are on the verge of achieving 100% energy self-sufficiency from renewable resources. We must wisely utilize this blessing. We cannot afford to be complacent, lazy, or adhere to unproductive habits.
Ladies and Gentlemen,
The Government I lead is determined to uphold the law. What is mandated by the Constitution and the law will be implemented. All economic actors must now comply with regulations. Obligations to the state must be fulfilled. We must combat smuggling. Smuggling destroys the livelihoods of tens of thousands of our citizens. I repeat: smuggling destroys the livelihoods of tens of thousands of our citizens. We must fight smuggling both into and out of the country. We cannot allow our wealth to be smuggled out of Indonesia.
To that end, in addition to energy and food self-sufficiency, I reiterate the importance of downstream processing. This is non-negotiable. All our commodities must be processed within the Republic of Indonesia—every single one.
Ladies and Gentlemen,
Education and healthcare are also our priorities. The strategies I have outlined are achievable and actionable. If you observe, the largest allocation in our state budget is for education. If I am not mistaken, this is the largest allocation in our history.
In many other countries, the largest budget allocation is for defense—such as in the United States and India. For Indonesia, the largest allocation is for education. This underscores our commitment to education as a priority. We firmly believe that education and healthcare are the ultimate solutions to poverty. Social protection, social assistance, and subsidies are interim measures—steps toward our economic resurgence through downstream processing. However, it is education and healthcare that will ultimately lift our people out of poverty.
Free meal program is also a strategic matter. By ensuring nutritious meals for our children, we save their future while empowering village, subdistrict, regencies, provincial, and national economies. Tens of trillions of rupiahs will circulate in the regions. For example, with the village fund providing Rp1 billion per village annually, adding funds for nutritious meals for children could increase the economic circulation in a village to approximately Rp8 billion per year—an 800% increase in local economic activity. This will reverse the trend of funds being centralized in Jakarta and instead flow to villages and regions.
Ladies and Gentlemen,
Our focus on eradicating poverty and hunger has become a global agenda. At the G20 Summit, the theme was combating poverty and hunger. Therefore, we will improve subsidies and social protection to make them more targeted and equitable. The Government is currently formulating measures to ensure that subsidies reach and benefit the most vulnerable groups of our society.
Ladies and Gentlemen,
In our efforts to increase efficiency, setting priority is pivotal. Not all proposals from regions or ministries can be fulfilled this year. However, I am confident that with our strategies, we will gradually be able to address all priorities that have been planned.
Ladies and Gentlemen,
To enhance clean governance, one of our breakthroughs is through digitalization. I extend my gratitude to the working groups under the coordination of the Chairperson of the National Economic Council, which successfully organized the launching of the Electronic Catalog Version 6.0 today. This initiative aims to enhance transparency, efficiency, and speed. Starting January 1, 2025, all Ministries, Agencies, and regional governments are required to utilize the Electronic Catalog Version 6.0. This version is expected to reduce procurement costs by 20 to 30% and administrative costs by 40 to 50%.
Ladies and Gentlemen,
In assessing our economy, there is a benchmark known as ICOR (Incremental Capital Output Ratio). Our ICOR stands at 6. In comparison, some of our neighboring countries have ICORs of 4 or 5. This indicates that we are less efficient, with inefficiency levels estimated at 30%. By utilizing this e-catalog, we aim to reduce inefficiencies. I thank all parties once again. Let us realize clean governance through prudent management, strong leadership at all levels, and effective use of technology. Ultimately, we must uphold the law with courage.
Ladies and Gentlemen,
That concludes my remarks. After reviewing data and talking to Ministers, as well as participating in a meeting at Ministry of Home Affairs with approximately 6,000 officials from across Indonesia, it is clear that Indonesia’s economy is robust. But it can be even stronger, more productive, and generate significantly more revenue. This additional revenue can then be used to eradicate poverty and advance our development.
An inflation rate of approximately 1.55% is exceptionally rare in global history. This achievement is the result of our collective efforts, not just the efforts of my administration. I have only been in office for 51 days. This is also a testament to the contributions of previous administrations. Nation-building is not a five-year or ten-year project; it spans decades. We are here today because of the legacies of past leaders whose portraits adorn our walls.
Therefore, we remain optimistic, while still vigilant. As a wealthy and large nation, there will always be those who wish to impede our progress. This is the nature of human history, and we must remain vigilant. With the leverage of technology, we are also susceptible to cyber threats. To counter this, we must work hard, especially to nurture future generations skilled in technology, cybersecurity, and artificial intelligence. To that end, we will focus on education in STEM (Science, Technology, Engineering, Mathematics) while continuing to nurture other fields as well.
Ladies and Gentlemen,
May the Almighty God always protect Indonesia, and may we remain grateful and united for the sake of our next generations.
By saying bismillahirrahmanirrahim, I officially hand over the Budget Implementation List (DIPA) and the Regional Transfer Allocation (TKD) for the 2025 Fiscal Year and I oficcially launch the Electronic Catalog Version 6.0.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.
Om santi, santi, santi om.
Shalom,
Namo Buddhaya,
Greetings of virtue.
(RI/MUR)