By Humas     Date 16 Agustus 2016
Category: Speech Transcript
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Assalamu’alaikum Warahmatullahi Wabarakatuh,

May peace be upon us all,

Om Swastiastu,

Namo Buddhaya

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

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

Distinguished Chairperson, Vice Chairpersons, and Members of State Insitutions;

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

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

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

Distinguished Bapak Try Sutrisno and Bapak Hamzah Haz;

Distinguished Bapak Boediono and Ibu Herawati Boediono;

 Distinguished Ibu Shinta Nuriyah Abdurrahman Wahid;

Distinguished Ibu Karlina Umar Wirahadikusumah;

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

Fellow Countrymen,

Distinguished Ladies and Gentlemen,

Let us together express our gratitude to God the Almighty, for His blessings and compassion we are able to attend the Joint Session of the House of Representatives of the Republic of Indonesia and the Regional Representatives Council of the Republic of Indonesia in the Commemoration of the 71st Anniversary of the Proclamation of Independence of the Republic of Indonesia.

Distinguished Ladies and Gentlemen,

The independence that we gained is a bridge to bring prosperity to the people, to uphold justice, to achieve progress for the whole Indonesian people. To achieve those goals, we have to build the nation.  Let us awaken our souls  and let us awaken our bodies. We have to develop from Sabang to Merauke, from Miangas to Rote. We have to become an advanced nation, a nation that is on a par with other nations in the world.

In the State Address delivered last year, I mentioned that the Working Cabinet had intended to lay a solid national development foundation in  the first year of administration. Our national development paradigm is now shifting from being consumptive to being productive, and from being ‘Java-centric’ to being ‘Indonesia-centric’. Regulations have been improved and cumbersomebureaucracy has been  massively cut out as we implement information and telecommunications technologies. We have also set to encourage  infrastructural development in remote areas across the country, particularly in rural and marginal areas, as well as border towns in order to strengthen national connectivity.

Emboldened by the achievement of fundamental economic transformation, in this second year of my tenure, the Government resolves to accelerate the development. The year of 2016 shall be termed as the National Development Acceleration Year. We have to move forward to an advanced Indonesia.

Fellow Countrymen,

Development acceleration is sorely needed. Since we gained our independence 71 years ago, we have not been able to break the chains of poverty,  sever the chains of unemployment, nor narrow down social gap.

Each and every President of the Republic of Indonesia had struggled and toiled to address those three challenges during their respective tenures, starting from President Soekarno, President Soeharto, President B.J. Habibie, President Abdurrahman Wahid, President Megawati Soekarnoputri, to President Susilo Bambang Yudhoyono.  Now We  are also addressing the very  challenges now.

The difference is that we are facing these challenges in the new world order, in the era of global competition, when competition takes place not only between areas but also between countries and regions. It is taking place in an era when all countries are interconnected to one another, one problem could turn into another problem for other countries in the world.

Now the global economy is still experiencing a slowdown. Consequently, our national economic growth is also being affected. Despite the brunts, we should be grateful that Indonesia’s economy in the first quarter of 2016 grew by 4.91 percent. Even in the second quarter this year, the national economic growth increased to 5.18 percent. The growth is much greater than the above-average economic growth of the world and of the developing countries. Indonesia’s economic growth is one of the highest in Asia.

In the meantime, the global political and security challenges also get more enormous and diverse. The phenomena of political upheavals in the Middle East, for example, create an impact on regional instability and trigger the spreading of terrorism in the world, including in the capital city of our country.

We all still have a vivid recollection of the 14 January 2016 terrorist attack on Jalan MH Thamrin, Jakarta, when terrorists tried to spread panic. Yet, they failed. Indonesian people are not afraid of being terrorised as unity is our asset as a strong nation.

The global community also praised our speedy response to act and crack down on terrorism.  Therefore, I call on the whole community to keep reaffirming our commitment to prevent and fight against terrorist acts. Let us  reassert that there is no place for terrorism in our homeland which has the motto Bhinneka Tunggal Ika ‘Unity in Diversity’.

Ladies and Gentlemen,

In the year of development acceleration, the Government is focusing on three breakthrough measures to alleviate poverty, unemployment, inequality, and social disparities. The three steps are namely: First, the acceleration of infrastructural development. Second, the preparation for productive capacity and human resources.Third, deregulation and de-bureaucratization.

Through the acceleration of infrastructural development, we are building infrastructure more equitably throughout the country in order to strengthen inter-regional connectivity and reduce inequality and social disparities. The development acceleration of logistics infrastructure includes roads, ports, airports, and railroads. While the development acceleration of strategic infrastructures encompasses power generation, telecommunications, irrigation, and public housing.

In the last two years, the Government has accelerated the construction of 2,225-km national roads, 132-km toll roads and 16,246-m bridges, or as many as 160 bridges. In 2016 we have the targets to construct 703 km national roads and more than 8,452-m bridges.

The construction of the railway is not only being carried out in Java, but also on the islands of Sumatra, Kalimantan, and Sulawesi. Up to this moment, the railway roads that have been in commission have reached 5,200   spoor-kilometers. In 2015, a 179.33 Km railroad was constructed and another 271.5 Km’sp railroad was in the construction process. Besides, we have also been developing trains for urban transportation such as the Mass Rapid Transportation (MRT), Light Rail Train (LRT), as well as the commuter line.

For the Sea Toll program, the Government has designated 24 ports as the Hubs for the Sea Toll Line. As supporting facilities, 47 non-commercial ports have been constructed and 41 ports are in the process of construction. The Government targets to build 100 ports until 2019. We will be providing vessels: we provided three (3) vessels in 2015 and weexpect  to provide 30 vessels in 2016. This is intended to realize our dreams to make Indonesia as the World Maritime Fulcrum. The ocean is the future of the nation, or known as Jalesveva Jayamahe.

We also accelerate the construction and development of airports as a form of “Air Bridge”. In 2016, nine airports have been upgraded  to have a better standard and  another airports have been officially opened. With respect to flight path, the Government has found ways of  overcoming the density of the flight path in the north of Java Island. I dare say that we now have embarked on a plan to open a flight path in the South of Java.

In regard to  electricity supply, the 35,000-MW electricity program continues to be accelerated and closely monitored. We want to ensure a well-implemented  programme and expect to achieve the target of 100 percent electrification ratio in 2019. When the target is reached, then Indonesia will no longer have blackouts or suffer  from power outage. With sufficient supply of power, small entreprises and home industries are expected to run smoothly and children are hoped to be able to study in the night without a hitch.

 The acceleration of infrastructural development, both logistics and strategic infrastructures will surely take the issues of nature preservation into account. The fulfillment of the target of electrification ratio also prioritises the use of new and renewable energy. Moreover, we are also accelerating the construction of dams and reservoirs to enhance the Water Resilience programme. In 2016, we intend to speed up the completion of the construction projects of 22 dams under construction, construct 8 new dams, 387 new ponds/lakes, and rehabilitate 71 ponds/lakes.

Along with the infrastructural development prioritising the preservation of nature, the Government has taken steps  to conserve peatland and prevent it from being set on fire. The Government will not tolerate arsonists of peatlands and forests for their acts because their acts are considered crimes against humanity.

Then, to speed up the birth of innovations in information technology and to make Indonesia the largest digital economy country in Southeast Asia, the Government continues to improve the quality and coverage of telecommunications infrastructures. To keep up with the times, the Government has put the 4G technology in place. As for its coverage range, the Government continues to construct the Palapa Ring to connect 400 regencies/municipalities using fiber-optic networks in 2015. Up to April 2016, to cover broader areas across the country, a preparatory phase has been set up to enable the construction of the West Package and Central Package of the Palapa Ring.

Meanwhile, to meet the housing needs of the people, in 2016 the Government has targeted to build of one million houses, some 700 thousand houses will be provided for Low Income People and 300,000 others for non-Low Income People.

Fellow Countrymen,

In the acceleration of infrastructural development, the Government has the obligation to develop marginal, underdeveloped areas by utilizing the State Budget finance. And in the meantime, in  areas with thriving and growing economy, the Government enhances private enterprises to promote closer cooperation with State -Owned  Companies . In 2016, the investment of the State-Owned Enterprises is expected to reach Rp410.2 trillion consisting of 62 strategic projects with the project value of Rp347 trillion. The investment value of the State-Owned Enterprises will continue to grow to reach Rp764 trillion in 2019.

Moreover, with full support from the House of Representatives, the Government has made a breakthrough by issuing a law on Tax Amnesty. It is expected to widen the base of tax revenues in order to accelerate the development and improve national competitiveness.

Distinguished Ladies and Gentlemen,

In the era of global competition, physical infrastructural development alone is not enough to overcome the issues of poverty, unemployment, social disparity, and inequality. This is coupled with the advent of the ASEAN Economic Community (AEC) signalling that the competition in Southeast Asia is becoming increasingly fierce.

To be able to compete in the global competition, Indonesia has to accelerate social infrastructural development namely productive capacity and human resources. Therefore, Indonesia not only becomes a spectator in the global economy race, but also takes an active part in the race and eventually comes out  winner.


In relation to that matter, the Government views the importance of broadening people’s access to productive economy activities by beefing up the progress and productivity of Micro, Small, and Medium Enterprises (MSMEs) sector. This sector has been the backbone of Indonesian economy. As a result, in the last two years, the Government has slashed the interest rate per annum of Small-scale Business Credit from 22 percent to 12 percent in 2015, and down to 9 percent in 2016. The Government  continues to provide the people with easy access to get such facilities.

A part from that, in a bid to prepare human resources to face global competition, the Government strengthens vocational education system. Through vocational education, we will be able to create our workforce equipped with capabilities and skills relevant to industrial needs. At the same time, we ensure that people of productive age can get jobs more easily.

The Government also continues to boost the creation of downstreaming research by strengthening synergy among government, universities, and industrial world to build a number of Centres of Technology and Innovation to support national industrialisation. In the meantime, to promote the State-Owned Enterprises to be more productive and to strengthen competitiveness, the Government explores the possibility of forming ‘holding company structure’.

In particular, the Central Government appreciates breakthroughs made by Regional Governments to prepare Indonesia’s productive capacities, including the readiness of the regions in enhancing the implementation of the One-Stop Integrated Service and Subdistrict Integrated Administration Service policy.

Distinguished Session,

The Government intends to develop social infrastructures, especially in human resource development to enable every single being in Indonesia to have the capability of reaching his/her maximum potentials. This step begins by giving nutritionally balanced menu during the first 1,000 days of one’s life.

Then,  we promote the development quality in the sectors of health, education, and social security to develop qualified, productive, and competitive Indonesian people.

In the sector of health, the Programme of Healthy Indonesia has three pillars. Firstly, the implementation of the paradigm of healthy. Secondly, strengthening health services. Thirdly, the implementation of the National Health Security (JKN). According to the Social Security Providers Body (BPJS) for the Health, data per July 2016, the number of JKN members has reached almost 170 million people.

The number of service facilities in cooperation with BPJS for the Health is now on the increase. Until July 2016, the Health Facilities of the First Level (FKTP) working together with BPJS for the Health have reached 20,239 facilities, while the Referral Health Facilities of Advanced Level (FKRTL) has 1,910 facilities related with drugstores 1,953 facilities, and optical stores 938 facilities.


In the sector of education, the Government is accelerating the distribution of Smart Indonesia Cards (KIP) all over Indonesia. The Government pays a special attention to school children of 6-21 years coming from disadvantaged families. By this card (KIP) the children are ensured to get the service of the Primary and Secondary Education, both formal and non formal education, including skills from courses/training institutions/Vocational Training Centres (BLK), as well as information on the main values on character education. The Government also attempts to increase the welfare of the teachers who are dedicating themselves in remote areas, outermost islands, and border areas.

Distinguished Ladies and Gentlemen,

As the catalyst of physical and social infrastructural development, the Government is committed to undertaking regulatory reform: de-regulation and de-bureaucratization. Many of our regulations are outdated and need to be renewed to go forward to meet the changes of time.

Thus, complex regulations need to be simplified, and   cumbersome procedures eliminated. The de-regulation and de-bureaucratization that we are carrying out is meant to render speedy services, provide regulatory certainty, synchronization, ease in investment and to increase productivity.


This is irrefutably evidenced by 12 Economic Policy Packages issued by the Government until early June 2016. Out of those 12 Economic Policy Packages, I must  say that 96 percent of the regulatory instruments are  already in place. In order to capitalise on  the benefits of those packages, the Government set up a Task Force for the  Acceleration and Effectiveness of the Implementation of Economic Policies on 28 June 2016. In the future, in a bid to beef up the national economy, the Government will launch other Economic Policy Packages.

As part of the de-regulation measure, the Government has also synchronized a number of regional regulations on trade and investment. More than 3,000 regional regulations have been revoked as they are considered no longer conducive for the progress of trade and ease of doing business. In response to a number of misconceptions on the annulment of a number of regional laws, let me reiterate two things. First, synchronization of regional regulations is done for the national interest, which also include the interests of the regions. Synchronization that has been performed is expected to bring benefits for the regions in attracting investment and providing job opportunities. Second, the annulled regional regulations are only those on trade and investment.

Synchronization is performed to create harmony and sustainability of the regulations from the 1945 Constitution with a litany of regulations, both at the central government and regional governments. No government regulation – either at the Central Level or at regional level is above the 1945 Constitution. All regulations have to comply with the Constitution, have to be under the will of the people.


Distinguished Session,

To enable the breakthroughs made in the Year of Development Acceleration to alleviate poverty, to reduce unemployment, and to narrow down social gaps, the Government  focuses its attention to four strategic aspects.

The first aspect is to accelerate legal reforms in order to provide legal certainty and satisfy the sense of justice of the people, and encourage bureaucratic reforms to provide more excellent public service. A crucial part of which is reforms within the Indonesian National Police and the Attorney General Office, through fundamental top- down reforms, not patchy reforms. Therefore, the professionalism of the Indonesian National Police and the Attorney General Office continues to be improved. We continue to improve the quality of the national civil servants to make our country become more competitive.

We also have to continue accelerating the use of Information Technology in the Government’s working system as an important part of the efforts to improve quality of public services, to promote efficiency, and to prevent corruption.

In addition, in an effort to strengthen the sense of justice, the Government has made breakthroughs in protecting the marginal groups. The Government has set a target of more than 55,000 severely disabled people to receive the Social Assistance in 2016. Furthermore, to protect children against crimes, the Government has issued Government Regulation in Lieu of Law Number 1 of 2016 on the Second Amendment of Law Number 23 of 2002 on Child Protection. This regulation states that crimes against children is categorized as an extraordinary crime and requires extraordinary handling.

The second strategic aspect is the reforms on the management of development budget. I have repeatedly pointed out on many occasions that we have to abandon the old paradigm which equitably distributes the budget. We have to work with a new paradigm, in which the budget is focused on priority programmes. The essence is that the people’s money must be used for the interests of the people through concrete programmes and real actions so as to make the benefits felt by the people.

Development budget, the people’s money can no longer be used up for bureaucratic operational activities such as official travels and budget for meetings that can actually be made more efficient. We also have to abandon the old tradition of using vague terms on the nomenclature of budget formulation because it will result in the inefficient use of development funds.

The third strategic aspect is foreign affairs. With a strong diplomacy, the Government accelerates efforts to embark on a number of international trade cooperations and  considers Indonesia’s participation in the Trans-Pacific Partnership Agreement (TPPA), RCEP, and many others.

We also continue to encourage the  pacific settlement of international conflicts. As the spirit that we bring when we call for tolerance and peace in a number of meetings with Arabian countries as well as with the United States, be it through dialogues or socialmedia. Indonesia also continues to be actively involved in encouraging the settlement of South China Sea disputes through negotiation and peace efforts following the International Permanent Court of Arbitration’s ruling in The Hague.

We  are also calling for a peaceful end to the civil war in Syria as well as for the fulfilment of the independence  rights of  the Palestinian people.

In line with that, we improve the quality of Indonesian nationals abroad. Through Multi-track diplomacy, we succeeded in releasing 14 Indonesian citizens held hostage by an armed group in South Philippines. It was also through diplomacy that two Indonesian citizens held hostage in Papua New Guinea  were successfully released. Until the end of July 2016, 7,555 cases of Indonesian citizens abroad were successfully resolved, most of whom are Indonesian Migrant Workers (TKI). For the same period, an estimated  23,651 Indonesian Migrant Workers  were facilitated  to be sent home through various means.

Meanwhile, in the framework of sovereignty stabilisation, the Government will take priority over the development of  outermost regions, as the veranda of Indonesia. We develop the regions such as Entikong, Natuna, and Atambua for the world to see and recognise Indonesia as a great country whose every square inch of her land is constantly treasured, defended  and well taken care of.

The fourth strategic aspect is democracy, political stability, and security. This nation would not be productive, would not be developed, nor be a winning nation if it did not respect human rights and constantly got mired in political turmoils. Our energy as a nation would be exhausted and only used to still political clamours rather  than making leaps of progress.

We are grateful that  nowadays our political cooperation is  becoming more condusive and political consolidation    is  getting increasingly stronger. As a result, we have been able to  democratically carry out  a number of political decision making processes and enact a number of legal products.

We are also grateful that simultaneous regional elections on 9 December 2015 were held in a generally peaceful and orderly manner. All have been done in  the tradition of democracy that is direct, general, free, confidential, honest and fair. Then, the Government together with the House of Representatives of the Republic of Indonesia and the Regional Representatives Council of the Republic of Indonesia continually  strive  to improve  the regional election regulation, creating a better  2017 simultaneous regional elections and next regional elections.

With the Indonesian National  Defence Forces (TNI) and the Indonesian National Police (Polri) constantly remaining alert and dedicated, the sovereignty and security of the people is always safeguarded. The Government continually seeks to improve the welfare and the professionalism of the TNI and the Polri through modernisation of weaponry, and continue to support the autonomy of our country’s industry to supply Primary Weaponry Defense Systems (alutsista) of the TNI and the operation of the Polri.

Last but not least, I would like to express my genuine appreciation  to the TNI and the Polri  for their success in   clamping down on Santoso,  one of the leaders of the terrorist groups in Indonesia. We stress the need for constant vigilance and continue to put pressure on any  potentials and threats of terrorism  across the  Indonesian Archipelago.

My Fellow Countrymen,

We  can  only make breakthroughs for the advancement of our nation and state if we adopt a  progressive, optimistic, and innovative mindset. As a result, the Government strives to stimulate the process of Mental Character Revolution, i.e. the change of mindset and the change of system that start from a number of government institutions.

All this time we have been kept shackled by pessimism  oblivious that fragments of the obstacles to the advancement of Indonesia indeed stem from ourselves. Indonesia is, in point of fact, a great nation, a nation that once had inspired other countries to free themselves from the shackles of colonisation. A  nation that offers the world the  true values of mutual cooperation contained in Pancasila and Trisakti. Bearing that in mind, we have to have high confidence and be resolved  that we can be a winner nation.

Ladies and Gentlemen,

At the end of my State Address before the Honourable Session, I invite all elements of the nation to work in  synergy together to alleviate poverty, unemployment, disparity and social gap. Without close cooperation, without mutual cooperation, we  would  be lagging behind , swept  away by the swift waves of change. It would be  virtually unthinkable.

Therefore, whatever field of work you  are engaged in, be the best that you can be, for actions speak louder than words , with “concrete” works, the Indonesian nation could be onto a winner. With concrete works, Indonesia will become a developed, sovereign, self-sufficient and civilised nation. We are now setting sail toward the course as charted by our founding fathers.Toward the prosperous and great Indonesia.

Long live the Republic of Indonesia!

I thank you.



Om Shanti Shanti Shanti Om,


Namo Buddhaya.

Jakarta, 16 August 2016





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