By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 16 Agustus 2017
Category: Speech Transcript
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Unofficial English Translation


Om Swastiastu,


May Peace Be Upon Us All


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 Chairpersons, Vice Chairpersons, and Members of State Institutions;

Distinguished Bapak BJ 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 AniYudhoyono,

Distinguished Bapak Try SutrisnoandBapakHamzahHaz,

Distinguished Bapak Boediono and Ibu HerawatiBoediono,

Ibu Sinta Nuriyah Abdurrahman Wahid,

Ibu Karlina Umar Wirahadikusumah,

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


My Fellow Countrymen,

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 Regional Representatives Council of the Republic of Indonesia and the House of Representatives of the Republic of Indonesia in the Commemoration of the 72nd Anniversary of the Independence of the Republic of Indonesia.


My Fellow Countrymen,

On many occasions, I have always reiterated that we are a big nation. Once again, Indonesia is a big nation. Indonesia is big not only because of its population of more than 250 million people. Indonesia is big not because it has around 17,000 islands. Indonesia is big not only because of its abundant resources.

However, we achieved our grandeur because our nation has stood the test of time and because we are able to remain united until we reach our 72nd anniversary of independence. Meanwhile, when some other countries are still plagued with violent conflicts among ethnicities, with divisions among religions, disputes among groups, we are grateful that we remain united within the framework of the Unitary State of the Republic of Indonesia with its Bhinneka Tunggal Ika motto. We have even become a role model for many countries in terms of managing diversity and building unity.

We are a fighting nation who possesses the courage to fight with our own power to win our independence. We fought for our independence thanks to the struggles of our heroes, clerics, Islamic students, religious leaders, and fighters from all across the nation.

This all gives us a sense of pride of Indonesia, our beloved country. This all too gives us confidence to face the future. We have to abandon the legacy of colonialism that bequeathed our nation a slave mentality, a character of inferiority, a character of cowardice, and persistent pessimism to look to the future.

We have to abandon those negative mentalities of scorning one another, mocking one another, and slandering one another because we are all brothers and sisters of the nation.

We have to lay a strong cultural foundation. We have to remainunited and stand tall to surmount global challenges that are increasingly complex, that are more extreme, and changing rapidly. Only avirtuous nation iscapable of winning the global competition.

We have to bear in mind that we once became a destination for other countries to study about Islam, art and cultures, science and technology and many others. It is this pride that we will have to re-claim. It is the pride in our own creation and works and our own products.


My Fellow Countrymen,

As a big nation with the world’s largest Muslim population, with hundreds of ethnicities and thousands of islands, Indonesian people must have self-confidence to make progress, to keep up with other countries, and to bring all the glory.

We have to believe in the strength of our own people. Evidence proved that we have been able to make great achievements. In the past, we were worried about the presence of foreign banks in our country.  Now we are witnessing our national banks are able to compete with those banks and have become major and modern banks. We have huge potentials, namely our young generations. Many of our young generations have become math, physics and biology olympic champions. Our young generations have showcased their accomplishments, such as becoming champions of the Qur’an memorisation competition, emerging triumphant in robotic works, making innovation in start-ups businesses, and being creative in arts in world stages. Many creative industries and national movie productionsaredriven by our young generation. These young people are getting more popular and their products are enjoyed by many.

However, we must not develop dangerously complacent attitude nor be carried away by all these achievements. We still have much to accomplish. We still have promises to deliver. As a reflection, we have to admit honestly that it would be impossible for Indonesia to become an advanced nation if the homes of our people all over the country do not enjoy electricity. It would be impossible for us to become a competitive nation if our logistics costs are high. It would be impossible for us to become a Global Maritime Fulcrum if we do not have seaports where big ships that transport our products are berthed.  It would be impossible for us to become a sovereign state in food commodities if the number of dams and irrigation channels that irrigate our agricultural fields all over the country are limited.

We are also facing challenges to be free from the trap shackles natural resources. After the era of oil and natural gas booming in 1970s was over and after the collapse of wood booming in 1900s, the era of mineral booming also came to an end. Even prices of several other commodities sharply fell. Therefore, we have to make a change.


My Fellow Countrymen from Sabang to Merauke, from Miangas to Rote,

We have to address all the problems quickly. It means we also have to draw a strict line. We may not doubt to safeguard our sovereignty, to safeguard our seas, to safeguard our borders, to safeguard our natural resources. We have to be brave to fight against the plundering of our marine resources. We have to be brave to sink illegal vessels to protect our fishermen. We have to be brave to safeguard every square inch of our land to bring prosperity for our own people. We have to be brave to dismiss Petral (a subsidiary of state-owned oil and gas company PT Pertamina). We have to be brave to shift subsidies for productive things. We have to be firm in the fight against drug dealers who destroy the future of our young generations. We have to be firm in facing infiltration of ideologies such as extremism, radicalism, and terrorism that harm the pillarsof our countries.

There will be no obstacles for us to draw a strict line because we hold on to Pancasila, the 1945 Constitution, the Unitary State of the Republic of Indonesia, and Bhinneka Tunggal Ika. We dare to take firm actions because we have Pancasila as our national principle, as the ideology for the nation and our souls.

Pancasila is a unifying force for all of us that we must internalise, that we must practice, and must become our working ideology in the life of our nation and our country. Therefore, the Government has taken an initiative to set upa Presidential Working Unit for the Fosteringof the State Ideology of Pancasila (UKP-PIP) that is mandated to inculcate Pancasila ideology into all elements of the people, including the young generations, the successor of this nation.


My Fellow Countrymen in Sabang,

Assalamu’alaikum, Krue Semangat!

To fulfil the promise of our independence, we have to be more focused in our work. In the first year of the Working Cabinet, the Government laid a strong national development foundation through the transformation of economic fundamentals and by re-adopting the Indonesia-centrist paradigm. In the second year, the Government pushed for the acceleration of national development, both in physical infrastructure development, in the acceleration development of human resources and in the improvement of our competitiveness to catch up with other countries. We also accelerated economic de-regulation by issuing several Economic Policy Packages.

In the third year, the Government moved ahead by focusing on the policy of equitable and just economic policies. The year 2017 is the year of collective work to realize equitable and just economy for all Indonesians.

We want all Indonesians all over the country to be able to feel the benefits of development. People in Aceh, Miangas Island, and Rote Island can enjoy the fruits of development evenly. We want farmers, fishermen, labours, clerics, traditional market traders, religious figures, civil servants, members of the Indonesian National Defence Forces (TNI), members of the Indonesian National Police (POLRI), journalists, cultural activists, university students, and many others to join hands to move forward, make progress and bring prosperity.

We do not want that prosperity to be only enjoyed by someone or a selected few. This is the independence promises that we must immediately fulfil, namely protecting the whole Indonesian people and the nation, improving public welfare, educating the life of the people, and in the establishment of a world order based on freedom, eternal peace, and social justice.

It is toward that destination we are moving into. In the past three years, the Government has been focused on alleviating poverty, reducing gaps, and lowering unemployment rate. As a result, poverty level in Indonesia dropped from 28.59 million people in March 2015 into 27.77 million people in March 2017. As for Gini Ratio, which measures the level of economic gap, ours continues to improve and reached 0.393 in March this year, as opposed to 0.414 in September 2014.

Our inflation had also been kept in check at 2.60 percent from January until July 2017. Even in May this year before the fasting month of Ramadan, our inflation was only 0.39 percent.

We also continue to maintain just and equitable economic growth. We have to ensure that our economic growth, which is 5 percent every year on average in the period of 2014-2016, is not only enjoyed by certain people but also by the whole Indonesian people.

Therefore, development that we are undertaking is not only for those in big cities but for all Indonesians in villages, marginal areas, outermost islands, and border areas.

We want people living in border areas to become parts of the Unitary State of the Republic of Indonesia. We want people living in border areas to feel the presence of the State through the development of border posts (PLBN) in Motaain and Motamasin in East Nusa Tenggara, Skouw in Papua, Entikong in West Kalimantan, Aruk in West Kalimantan, and Nanga Badau in West Kalimantan. Border posts are Indonesia’s forefront porches that we expect to be able to create new pockets of economic growth so our development can be more equal all across the country.

To accelerate equality of development in the regions and in the villages, the Government has increased budgets for transfers to the regions and village funds. Through the Physical Special Allocation Fund (DAK), the Government has improved access for the people to get basic infrastructure services suchas drinking water channelled to the people’s houses. The Government has also pushed for the development of economies in the regions by increasing the percentage of the numbers of provincial roads, regency/municipality roads, and by improving irrigation system for agricultural sector. The commitment of the economic equalityhas also been made through the increase in the Village Funds, which have this year amounted to 60 trillion rupiah. With these Village Funds, the Government urges the acceleration of economic growth and equalityin the villages.To support equality, the Government has also encouraged the rise in the national electrification ratio that reached 92 percent in March 2017. Before this respected assembly, I would also like to congratulate the people of Wogalirit Village of Doreng District, Sikka Regency, East Nusa Tenggara, who have after 72 years of the independence eventually enjoyed electricity. I would also like to congratulate other villages across the nation that were finally able to enjoy electricity.

The desire to make a just equality is not merely a slogan. We have really made it happen. For years, our brothers and sisters in Papua had to buy fuels at high price, ten times as high of that in Java or Sumatra Islands. This must no longer happen in the Land of Pancasila. Therefore, the Government has implemented the one-fuel price policy so that our brothers and sisters in Papua can enjoy the same price as that in Java and other regions in Indonesia.


My Fellow Countrymen in Merauke, Namek-Namuk, Izakod Bekai lzakod Kai, One Heart with One Dream

Seventy-two years after our independence, when other countries have explored the outer space, the affairs of land certification for the people have not been resolved. As a result, there have been land disputes either among citizens, between citizens and corporates, or even between citizens and the Government. Therefore, through the policy of Just Economic Equality, the Government has accelerated the process of land certification that has so far reached 250 thousand fields.

The Government is currently redistributing lands for the people and it has handed over 707 thousand hectares of forest to indigenous communities to be managed productively. Besides, the Social Forestry Program is also being implemented to make the people comprising 40 percent of those in the lowest layer gain the access to make use of the forest to improve their welfare.

The Government is also continuing pro-people programs that have been run since the first year of the Working Cabinet, mainly the Aspiring Family Program (PKH), the Fishermen Protection Program, the Program to Accelerate the Construction of Apartment for Low-Income People, and the program to improve the quality of improper housing (RLTH).

To reach the 40 percent of those in the lowest layer, the Government has reformed policies so that subsidies can be targeted accurately. The Government has gradually made a synergy between social aid programs and has turned rice social assistance (Rastra) into a non-cash aid. Besides, the efforts in favouring the 40 percent of the people from the lowest layer have also been made through the strengthening of social aid programs and the increasing of the number of beneficiaries.

To support micro, small, and medium enterprises, the Government has also made every effort to lower the interest rate for the People’s Business Credit (KUR). Now, the interest rate of KUR is 9 percent. We hope that 94.4 trillion rupiah of KUR disbursed in 2016 could elevate prosperity for micro, small, and medium enterprises. With easier access of capital, we wish that this could drive the economy of the people, particularly that of small merchants. Besides providing easier access of capital, we have also revitalized traditional markets so that merchants could run their trading activities more comfortably and the markets could compete with modern markets.


My Fellow Countrymen in Miangas,

Tabea, Sansiote Sang Patepate,

Greetings of Peace in Unity,

We have to bear in mind that building Indonesia is building its people. Alhamdulillah, thanks to God, our collective work in improving the quality of human development in Indonesia has so far yielded in an impressive result. Indonesia has improved from a country categorized with medium high development to a country with high human development, with its Human Development Index (IPM) climbing up from 68.90 in 2014 to 70.18 in 2016.

The rise in IPM cannot be set aside from our collective work in increasing the coverage of the Healthy Indonesia Card (KIS) program, the Smart Indonesia Card (KIP) Program, the National Health Insurance (JKN) Program, and the Supplementary Feeding (PMT) Program for infants and pregnant women.

The human resource development will surely carry on. The Government is underscoring not only the efforts to minimize the impact of chronic nutritional deficiency, to decrease the number of stunting cases, but also the efforts to prepare the young generation that is qualified, skilled, and competitive. For that reason, the Government has initiated the improvement of the labours’ competence, among others, through vocational education and trainings. We constantly increase and strengthen the education in vocational high schools (SMK) and polytechnics to make them meet the need in the industrial world. All of these are made to produce strong and reliablehuman resources.


My Fellow Countrymen in Rote,

Ita Isa, We are United as One,

The development of human resources and social infrastructures should be in line with the accelerated development of infrastructure. To make our children able to study well, the development of educational facilities will continuously be improved.

In line with the preparation of the Indonesian human resources, the Government has also developed centres of new economic growth, new industrial areas outside Java such as Sei Mangkei Industrial Zone in North Sumatra and Morowali Industrial Zone in Central Sulawesi.

The development of the industrial zones is supported with the infrastructure development in transportation to improve connectivity in each part of the country. We also want that all regions in Indonesia are well-connected either by air, sea, or land. Therefore, we are building pioneer airports, seaports, parallel roads in border areas in East Kalimantan, cross-border roads in Papua, and border-belt roads in East Nusa Tenggara Province.
Regional economy, mainly in border areas, will not develop rapidly unless electricity and telecommunication facilities exist. For that reason, the Government have persistently urged electricity development in 31 priority locations and continued the construction of base transceiver stations (BTS) to make the districts in border areas able to access telephone services and information.


My Fellow Countrymen from Sabang to Merauke, from Miangas to Rote,
We will become an advanced country considered by other countries in the world if we have competitive edges. One of the factors causing our competitiveness to remain weak is corruption, the nation’s common enemy. For that reason, before this respected Plenary Session, I would like to invite every Indonesian citizen to work together to fight against corruption. The Government supports any effort, by any party, to prevent and fight against corruption as well as to make the Corruption Eradication Commission (KPK) stronger.

Other than fighting against corruption that could eat away the State Budget,eat away to people’s money, we are also improving the national taxation system and database. Therefore, the Government saluted to the respected Members of the House of Representatives that have in their session agreed on the Government Regulation in Lieu of Law (Perppu) No. 1 of 2017 on the Access of Financial Information for the Purpose of Taxation. We feel optimistic that with the regulation, the Indonesia’s State Budget will remain robust as the source of its strength stems from the people, and every rupiah in it is spent for the sake of the people. Besides, Indonesia is apparently getting more than ready to welcome the world taxation era that will implement the Automatic Exchange of Information (AEoI).

Afterwards, considering Indonesia’s competitiveness in the future, we have to anticipate changes which are now mostly in digital forms. We must keep developing national competitiveness by making use of digital breakthrough as an inseparable part of bureaucracy, public services, the development of micro, small, and medium enterprises, the national economic system, and the disbursement of cash and non-cash subsidies.

The Government has also removed many regulations and eliminated cumbersome and unnecessary bureaucracy that have hampered Indonesia’s economy, mainly by implementing 14 Economic Policy Packages since 2015.

The result of the various Economic Policy Packages can be seen in the increasing international confidence in Indonesia’s economic resilience. In the Ease of Doing Business (EoDB) rank, Indonesia’s rank increased from 106th in 2016 to 91st in 2017. Moreover, Indonesia was rated investment grade or worthy of investment by three credible international rating agencies, the Standard and Poor’s Global Ratings, Fitch Ratings, and Moody’s. Even in a business survey conducted by the United Nations Conference on Trade and Development (UNCTAD), Indonesia’s position rose to the 4th place as a prospective investment destination country.


Distinguished Members of Parliament,

Ladies and Gentlemen,

One of the promises made as an independence country as stated in the preamble to the constitution is that we participate in the maintenance of world order based on independence, eternal peace, and social justice. It requires all of us to implement an independent and active foreign policy.

In international diplomacy, one of Indonesia’s active roles and leadership are shown by encouraging Myanmar to resolve the conflict in Rakhine state through more inclusive development, respect for the human rights, and protection for all communities. Indonesia has also accommodated 1,806 migrants dislocated from the conflict, sent humanitarian aid, and built schools in Myanmar.

We also give full support to the independence of Palestine and we have opened an Honorary Consulate in Ramallah, Palestine. We also continue to encourage ASEAN and the United Nations to support the independence of Palestine.

Indonesia also strongly condemned the restrictions on worship at Al-Aqsa Mosque in July 2017. Indonesian diplomacy took the necessary moves to defend the Palestinian people by, among others, proposing international protection in Al-Aqsa Complex.

While in economic diplomacy, our diplomatic machine also continues to work on non-traditional markets in Africa, the Middle East and Asia. Over the past year, PT INKA successfully exported 150 railway carriages to Bangladesh and PT Dirgantara Indonesia exported CN 235 aircraft to Senegal and Thailand.

The protection of our citizens overseas also becomes our common commitment. In addition to taking steps to protect and assist migrant workers, we have also managed to free most of the Indonesian citizens abducted by terrorist groups in Mindanao and evacuated Indonesians trapped in the ISIS conflict in Marawi.


My Fellow Countrymen,

In the midst of a wave of globalisation that is changing very fast and extreme, Indonesia’s independence is a very important pillar in realising people’s prosperity and upholding social justice. The Government continues to work hard to realise food sovereignty, by increasing the production of strategic foodstuffs, mainly rice, corn, beef, chilies, and shallots.

The Government also continues to strengthen the nation’s independence by increasing technological innovation and constructing new renewable energy power plants and encouraging the increment of Local Content Level (TKDN) in constructing new renewable energy power plants.


My beloved people,

Distinguished Session,

On this occasion, before all Indonesian people, I want to emphasise the importance of democracy and stability in order to realise social justice for all Indonesian people. Through democracy, we safeguard people’s sovereignty and harmony in diversity.

We should be grateful that the implementation of the 2017 Simultaneous Regional Head Elections in 101 regions ran safely and smoothly. The Government wishes to thank for the mutual cooperation of all parties, from the central and regional election organizer, the TNI and POLRI apparatus, all political parties, including to all candidates for the regional heads and their vices. Most importantly, the Government expressed gratitude to the people of Indonesia who have given theirvotes, as a representation of political joy and democracy in Indonesia.

I invite all of us to continue working collectively to maintain the joy of Indonesian democracy, especially in the Simultaneous Regional Head Electionsin 2018.

As an important part in maintaining the joyous momentum of the people’s democracy, the Government continues to pay attention to the security stability, and encourages the improvement of the capabilities, professionalism, and prosperity of TNI and POLRI.

The Government and all Indonesian people are grateful to the TNI for always being faithful to the Unitary State of the Republic of Indonesia and staying alert to protect the sovereignty of the nation and state, including from the infiltration of global terrorist movement.

The Government and all Indonesians are also grateful to POLRI for always protecting people’s security. This includes the success of POLRI, BNN, and Directorate General of Customs and Excise in dismantling smuggling of 1 ton of sabu (crystal methamphetamine).

In the future, TNI and POLRI must be strengthened because the future challenges are very complex and changing rapidly. The challenges of defence and security that we face are no longer in the Java Centrist-paradigm, but Indonesian-Centrist. Therefore, our TNI soldiers and defence strategy should be able to safeguard every square inch of land, every ocean wave, and every horizon of Indonesia.

Meanwhile, the types of threats we face today are not only invasions from other countries. There are new threats in the forms of extremism, radicalism, terrorism, human trafficking, drugs-related crime, weapons smuggling, and cyber-crime.

Therefore, I appeal to all Indonesian people, to carry out our national duties and responsibilities to participate in defending the nation. Wherever we are, whatever our education is, whatever our profession is, whatever we do, we all have rights, duties, and equal opportunity to defend the country.


Ladies and Gentlemen,

My Fellow Countrymen,

To conclude the State Address before this Honourable Session, I invite all of us who have been granted mandate by the people, who are carrying the mandate of the people, in order to remain steadfast to make the common prosperity and social justice as our course of work, as the aim of our collective work, for the realisation of Indonesia Raya.

Therefore, from Sabang, from Merauke, from Miangas, from Rote, let us all cry out together:


Long Live the Republic of Indonesia!

Long Live the Land of Pancasila!


Thank you.

Wassalamu’alaikum Warahmatullahi Wabarakatuh,

Om Shanti Shanti Shanti Om,

Namo Buddhaya.

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