STATE OF THE NATION ADDRESS OF PRESIDENT OF THE REPUBLIC OF INDONESIA AT THE ANNUAL SESSION OF THE PEOPLE’S CONSULTATIVE ASSEMBLY OF THE REPUBLIC OF INDONESIA AND THE JOINT SESSION OF THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA AND THE HOUSE OF REGIONAL REPRESENTATIVES OF THE REPUBLIC OF INDONESIA ON THE OCCASION OF THE 80TH ANNIVERSARY OF THE PROCLAMATION OF INDEPENDENCE OF THE REPUBLIC OF INDONESIA, JAKARTA, 15 AUGUST 2025
Bismillahirrahmanirrahim,
Assalaamu’alaikum warahmatullahi wabarakatuh,
Good morning,
May peace be upon us,
Shalom,
Salve,
Om Swastiastu,
Greeting of virtue,
Rahayu, rahayu.
Distinguished Vice President of the Republic of Indonesia, Saudara Gibran Rakabuming Raka, and Ibu Selvi Ananda Putri;
Distinguished the 6th President of the Republic of Indonesia, General (Retired) Prof. Dr. Susilo Bambang Yudhoyono;
Distinguished the 7th President of the Republic of Indonesia, Bapak Ir. Joko Widodo;
Distinguished the 6th Vice President of the Republic of Indonesia, General (Retired) Try Sutrisno;
Distinguished the 10th and 12th Vice President of the Republic of Indonesia, Bapak Muhammad Jusuf Kalla;
Distinguished the 11th Vice President of the Republic of Indonesia, Prof. Boediono;
Distinguished the 13th Vice President of the Republic of Indonesia, Prof. K.H. Ma’ruf Amin;
Distinguished Ibu Shinta Nuriyah Abdurrahman Wahid, Spouse of the 4th President of the Republic of Indonesia;
Distinguished Ibu Soraya Hamzah Haz, Spouse of the 9th Vice President of the Republic of Indonesia;
Distinguished Chairpersons and Vice Chairpersons of State Institutions;
Distinguished Speaker of the People’s Consultative Assembly (MPR), Bapak Ahmad Muzani, along with Former Speakers, Vice Speakers, and Members of the People’s Consultative Assembly (MPR) of the Republic of Indonesia;
Distinguished Speaker of the House of Representatives (DPR), Ibu Puan Maharani, along with Former Speakers, Vice Speakers, and Members of the House of Representatives (DPR) of the Republic of Indonesia;
Distinguished Speaker of the House of Regional Representatives (DPD), Bapak Sultan Bachtiar Najamudin, along with Former Speakers, Vice Speakers, and Members of the House of Regional Representatives (DPD) of the Republic of Indonesia;
Distinguished Chief Justice of the Supreme Court of the Republic of Indonesia, Prof. Sunarto;
Distinguished Chief Justice of the Constitutional Court of the Republic of Indonesia, Bapak Suhartoyo;
Distinguished Chairperson of the Judicial Commission of the Republic of Indonesia, Prof. Amzulian Rifai;
Distinguished Chairman of the Audit Board of Indonesia, Ibu Isma Yatun;
Distinguished Coordinating Ministers, Ministers, Heads of Agencies, Heads of Institutions, Attorney General, Commander of the Indonesian National Defense Forces (TNI), Chief of the Indonesian National Police (Polri), and Chief of the State Intelligence Agency (BIN), and all Members of the Red and White Cabinet,
Distinguished Chairpersons of Political Parties;
PDI Perjuangan, on behalf of the Chairperson, Ibu Puan Maharani;
Chairperson of Partai Golongan Karya, Bapak Bahlil Lahadalia;
Chairperson of Partai Gerindra, myself;
Chairperson of Partai Amanat Nasional, Bapak Zulkifli Hasan;
Chairperson of Partai Demokrat, Bapak Agus Harimurti Yudhoyono;
Chairperson of Partai Kebangkitan Bangsa, Bapak Abdul Muhaimin Iskandar;
President of Partai Keadilan Sejahtera, Bapak Muzzamil Yusuf;
Chairperson of Partai Nasional Demokrat, Bapak Surya Paloh;
Excellencies Ambassadors of Friendly Countries and Heads of Representative of International Agencies and Organizations;
Speakers of the Parliaments4 from Friendly Countries;
Speaker of the House of Representatives from Malaysia, His Excellency Tan Sri Dato Dr. Johari Bin Abdul from the Parliament of Malaysia;
Speaker of the Legislative Council of Brunei, His Excellency Dato Seri Setia Awang Haji Abdul Darussalam Rahman;
Speaker of the Parliament of Singapore, His Excellency Mr. Seah Kian Peng;
Speaker of the National Parliament of Timor-Leste, Her Excellency Ms. Maria Fernanda Lay;
Distinguished Members of the Press and Media, both local and international;
Distinguished Guests,
People’s Representatives,
My Fellow Indonesians and Fellow Countrymen, wherever you are today,
Ladies and Gentlemen,
On 17 August 2025, just two days from now, Indonesia will commemorate the 80th anniversary of its founders’ declaration of independence. The proclamation of 17 August 1945 was a pivotal milestone in the nation’s long struggle to stand proudly on its own.
Following the declaration of independence on 17 August 1945, our nation fought for five years, both through armed resistance and diplomacy, until our sovereignty was truly gained and recognized in 1949.
Since that time, my predecessors, from the first President of the Republic of Indonesia to the seventh, have dedicated themselves to building this nation, to materializing a fair and prosperous nation.
President Sukarno led the establishment of the Unitary State of the Republic of Indonesia and successfully preserved the unity of the Republic of Indonesia amidst the intervention and invasion from other countries. He also integrated West Irian into the territory of the Unitary State of the Republic of Indonesia.
President Suharto guided Indonesia’s equitable economic development from Sabang to Merauke, realized food self-sufficiency, established the basis of economic industrialization, and lowered rates of extreme poverty nationwide.
President Habibie introduced state-of-the-art technology to us and worked to maintain the nation’s economic stability following the multidimensional crisis in 1998.
President Abdurrahman Wahid preserved national stability, enhanced interethnic, interfaith, and interracial harmony, strengthening and affirming Indonesian’s identity as a diverse nation unites in harmony.
President Megawati finalized economic recovery process following prolonged economic and monetary crisis, resolved thousands of cases where businesses collapsed as the consequence of the 1998 monetary crisis, and oversaw the first Indonesia’s direct presidential elections, as well as implemented initiatives to reinforce the nation’s state institutions.
President Susilo Bambang Yudhoyono addressed economic insecurity brought by the 2008 global financial crisis, resolved the conflict in Aceh, and established a solid foundation for fair, equitable, planned economic growth in Indonesia.
President Joko Widodo oversaw the development of significant infrastructure projects, improved connectivity among centers of economy, and safeguarded the nation during the COVID-19 pandemic, allowing Indonesia to become one of the fastest countries to recover from the impact of the pandemic and to overcome economic difficulties, initiated the development of Indonesia’s New Capital of Nusantara (IKN), and laid a strategic foundation for downstreaming Indonesia’s natural resources.
All my predecessors, along with the governments under their leadership, endeavored to realize the ideals of our independence: an Indonesia that is free, sovereign, just, and prosperous.
A nation fully aligned with the vision set forth in the Preamble to our 1945 Constitution. A country that steadfastly protects all Indonesian people and the entirety of our homeland; that resolutely promotes the public welfare; that commits to the education and advancement of every citizen; and that plays an active role in realizing a world order founded on freedom, everlasting peace, and social justice.
Ladies and Gentlemen,
The essence of our independence is the freedom from poverty, freedom from hunger, and freedom from suffering. We must become a nation that stands tall and self-reliant: a nation with economic sovereignty, capable of achieving food self-sufficiency.
Our nation has been blessed by Allah subhanahu wa ta’aala with an abundance of natural resources. Our challenge is to safeguard and manage this wealth wisely, so that the ideals of our independence may be swiftly realized.
Ladies and Gentlemen,
Today, 299 days ago, I stood in this very place and took the oath of office before the MPR, in the presence of the representatives of the Indonesian people and God Almighty, together with my Vice President, Gibran Rakabuming Raka. And on this solemn day, I once again stand before the Indonesian people and their representatives to deliver my report on the work of the Government under my leadership, as well as the performance of our state institutions.
First and foremost, allow me to affirm that the transition of national leadership, from President Joko Widodo to the Government I lead, has unfolded in a spirit of unity, with dignity, honor, and a sense of political maturity.
The leadership transition, which is recognized internationally as smooth, exemplary, and dignified, stands as proof of the maturity and resilience of our democracy. Not every nation is able to carry out a transfer of leadership as seamlessly and effectively as we have. Wherever I travel abroad, leaders of friendly nations often ask me, “How did you do it? How did Indonesia manage?”
I told them that we have succeeded because we uphold a uniquely Indonesian democracy. A democracy of peace, a democracy that unites. Not a democracy that pits us against one another, tears each other down, or trades insults. Not a democracy that breeds hatred.
This is what we must hold firmly to: the democracy we have inherited from our forefathers. A democracy that is in harmony with our culture — the culture of kekeluargaan (mutual benefits), of gotong royong (mutual cooperation), of mikul dhuwur mendem jero (total dedication), of mutual support, of mutual assistance, of tepo seliro (tolerance), of refrain, of iso rumongso dudu rumongso iso (empathy not arrogancy).
We fully understand that in a modern state, oversight is essential. Transparency must accompany the exercise of power. History teaches us that when power goes unchecked, it leads to corruption. For absolute power corrupts absolutely. We understand that corruption remains our nation’s gravest problem. Corrupt behavior is entrenched at every level of the bureaucracy and permeates every government institution and organization. It afflicts our state-owned enterprises (BUMN) and regionally-owned enterprises (BUMD). This is not a reality that we should conceal.
After 299 days at the helm of the executive branch, I have become ever more aware of the magnitude of the challenges we face, particularly the depth of corruption within our government. This is an unfortunate reality, but one that I must report openly to the representatives of the Indonesian people.
In my inaugural address here, I declared that the Indonesian people must have the courage to confront the shortcomings, mistakes, and ailments within our nation so that, together, we may correct those shortcomings. Without this courage, improvement is an impossible task.
I was sworn in to uphold the mandate of the Constitution of our Republic. Therefore, I have no choice but to lead the fight to eradicate corruption and abuse across all executive and government institutions.
That is why, at the start of 2025, we identified and secured Rp300 trillion in the State Budget that was vulnerable to misuse. This amount included allocations for domestic and international travel, office stationery, and various other expenditures that had long been sources of waste. This is mandated by paragraph 4, Article 33 of our Constitution. We redirected these funds toward more productive programs that would deliver direct and tangible benefits to the people.
Honorable Assembly,
As President of the Republic of Indonesia, I bear the responsibility for leading the executive branch of government and ensuring the rule of law to safeguard our nation’s security and well-being.
Today, we face the stark reality of a massive outflow of our national wealth. An economic condition I refer to as net outflow of national wealth. Let us not waste our time or energy pointing fingers. We have neither the luxury of time nor the resources to dwell on blame. The Government under my leadership must focus on finding swift and appropriate solutions to this fundamental problem.
Just as a body cannot survive if its blood keeps flowing out, a nation cannot endure if its wealth continually flows abroad. If we allow this to persist, we risk becoming a failed state.
To that end, I am entrusted with the responsibility to take decisive action, even when such choices are challenging or unpopular. It is imperative that I protect our nation’s wealth, ensuring it serves the interests of our people for now and tomorrow, for the benefit of both present and future generations.
I firmly believe that if we remain steadfast in following the path laid out by our nation’s founders, Bung Karno, Bung Hatta, Bung Sjahrir, Haji Agus Salim, and the 1945 Generation, and uphold their vision or blueprint for how this country should be governed, as enshrined in the 1945 Constitution, our nation will remain secure and strong. We must study the 1945 Constitution in depth. The 1945 Constitution is not merely a slogan or a mantra. The 1945 Constitution is a living framework. It is relevant, effective, concrete, and fully operational for guiding our nation’s life.
I sense a growing tendency among Indonesia’s current elites to regard the ideas of Bung Karno, Bung Hatta, and the 1945 Generation as irrelevant, outdated relics unsuited to the challenges of the 21st century. This view is misguided. The 1945 Generation – the generations of Bung Karno, Bung Hatta, Bung Sjahrir, the honored figures, experienced colonization firsthand. They lived through the harsh realities of imperialism and saw our nation’s wealth siphoned abroad for centuries.
Thus, the blueprint they created, although it is relatively brief, clearly outlines the steps we must take to strengthen our economy and uphold our democracy. I firmly believe that if we follow the path laid out by our predecessors, we will grow into a strong and prosperous nation.
Ladies and Gentlemen,
A nation’s true strength lies in its ability to manage and control its resources wisely. Therefore, we must have the courage to acknowledge and correct our course when we have taken a wrong step.
It is indeed ironic that a country producing the most palm oil in the world once faced a shortage of cooking oil. The situation is absurd and does not make any sense. It turns out to be the result of manipulation – or I rather called it “serakahnomics” – which was previously mentioned by the Speaker of DPR. We, as one of the largest palm oil producers in the world experienced a shortage in cooking oil for weeks, even months.
My Fellow Citizens,
It is indeed ironic that we subsidize fertilizers, agricultural equipment, subsidize pesticide and rice, and provide subsidies for irrigation and dams, yet food prices are sometimes out of reach for many of our people. These ironic situations arise due to distortions and misconduct in our economic system. The economic framework mandated by the 1945 Constitution, particularly Article 33, paragraphs 1 through 3, has been largely neglected, as if its provisions are no longer relevant to modern life in the 21st century.
Distinguished Ladies and Gentlemen,
After careful consideration, I am convinced that our Constitution, particularly its safeguard provisions in Article 33, paragraphs 1 through 4, serves as the cornerstone of our economy.
Paragraph 1: The economy shall be organized as a common endeavor based upon the principle of mutual benefit. The principle of mutual benefit, not the principle of conglomeration. Sectors of production which are important to the state and affect the livelihood of the people shall be controlled by the state.
Ladies and Gentlemen,
Let me ask you all — is rice important to the state? It affects the livelihood of the people, doesn’t it? Is rice milling also crucial to the state? Doesn’t it also affect the people livelihood? On the other hand, there are some, not all, since I have to be fair, some businesspersons who use their power and capital to dominate and manipulate the livelihood of the people. It is absolutely unacceptable.
Paragraph 3: The land, the waters, and the natural resources contained therein shall be controlled by the state and used for the greatest prosperity of the people.
Ladies and Gentlemen,
Paragraph 4: The national economy shall be conducted by economic democracy, guided by the principles of togetherness, justified efficiency. Thus, we can say that efficiency is mandated by the Constitution but there are still some people oppose it. The national economy shall also uphold environmental insight, autonomy, and the safeguarding of the balance between development and national economic unity.
My Fellow Citizens,
When we fail to consistently uphold our Constitution, economic distortions emerge. Progress toward economic equality becomes sluggish. The benefits of growth are concentrated in the hands of a few. As a result, the average economic growth rate of 5 percent over the past seven years does not truly reflect the real conditions experienced by most Indonesians.
Too many children still go hungry, farmers and fishers struggle to sell their harvests, countless people live without adequate housing, teachers go unappreciated, and families are unable to access medical care, whether due to high costs or the absence of health facilities in their communities. However, by consistently upholding our Constitution, I am grateful to report that in just 299 days, we have achieved significant progress.
Despite ongoing political and economic turmoil around the world, including trade war and tariffs chaos, Indonesia’s economy grew by 5.12 percent, exceeding 5 percent growth. Many experts believe this growth could accelerate further in the coming years.
Amid global uncertainties, investment realization in the first half of 2025 reached Rp942 trillion. It’s a 13.6 percent increase from the previous year. It meets the 2025 State Budget target even before the year ended and creating jobs for 1.2 million Indonesians.
Ladies and Gentlemen,
We have successfully made a strategic intervention to enhance the nutrition of 82 million Indonesian children and pregnant women.
Ladies and Gentlemen,
We have reached a stage we can truly be proud of. This morning, I received a report from the National Nutrition Agency that 20 million schoolchildren, preschoolers, pregnant women, and breastfeeding mothers are now benefiting every day from the Free Nutritious Meal (MBG) program. I’d like to thank the National Nutrition Agency. Before this Honorable Assembly, allow me to extend my sincere appreciation to Head of the National Nutrition Agency and all its staff for this remarkable achievement.
Ladies and Gentlemen,
Over the past seven months, we have accomplished what has taken other nations years to achieve. For instance, I met with President and Former President of Brazil and the country required 11 years to provide 40 million free, nutritious meals.
Ladies and Gentlemen,
We have to recognize the capability of our nation, as we can achieve many things together if we are united in will.
Several mismanagement issues need to be addressed to ensure the program runs smoothly, particularly in the areas of kitchen infrastructure, supply chain management, and training for managers and staff.
Therefore, I would like to extend my sincere appreciation to Head of the National Nutrition Agency. You and your staff have performed really well. Sometimes, we forget to express gratitude to those who do good but we never seem to forget someone who make a mistake — we keep remembering it.
My heartfelt gratitude also goes to all parties who have supported the program — including the National Defense Forces (TNI), the Indonesian National Police (Polri), Islamic organizations such as Nahdlatul Ulama (NU) and Muhammadiyah, community organizations, cooperatives, and foundations — for their unwavering dedication and collaborative efforts in establishing Nutritional Provision Service Units across all provinces of Indonesia.
MBG program is not merely a social program, but a foundation for creating a healthy, intelligent, and productive generation. The United Nations says, “The Free Nutritious Meals is the best investment a nation can make.” Although the MBG program has been running for eight months, its impact is already evident: school attendance has risen, and children’s performance has improved. As of today, 5,800 Nutritional Provision Service Units are operating across all 38 provinces of Indonesia. The program has generated 290,000 new jobs in these kitchens, involving 1 million farmers, fishers, breeders, and MSMEs. MBG has stimulated economic growth in villages.
Ladies and Gentlemen,
No major country is unable to produce its own food. To that end, the Government that I lead is committed to ending dependence on rice imports by opening up two million hectares of new rice fields, particularly in Central Kalimantan, West Kalimantan, Sumatra, Papua, and across other provinces.
Beyond extensification, we are also intensifying agricultural efforts. We are promoting local food production in villages, streamlining bureaucratic procedures for fertilizer distribution, delivering fertilizers directly from factories to farmers, and providing farmers with modern agricultural equipment. We have also raised the purchase price of unhusked rice to Rp6,500 per kilogram, ensuring that farmers, as producers, can enjoy greater profits.
Today, we record a surplus in rice production. Our national rice reserves amounted to more than four million tons, the highest in our history. For the first time in decades, Indonesia has started to resume its exports of rice and corn. I have noticed that everywhere I have seen, farmers are smiling as the price of unhusked rice has remained stable, resulting in improved income. To protect Indonesian consumers, my administration will always be vigilant against fraudulent practices, manipulation, scams, illegal hoarding, and withholding of food distribution.
My administration will not hesitate. We will remain resolute against those who break the law, those who obstruct the lives of our people, and those who seek excessive profits at the expense of the hardship of the common people. My administration will consistently exercise the authority given to us as outlined in the 1945 Constitution and Law Number 7 of 2014 on Trade, particularly Article 107 in conjunction with Article 29 paragraph 1:
“Any business entity that stores basic and/or essential goods in certain quantities and for a specified period causing disruptions in demand, price volatility, and/or disruptions to distribution may be subject to imprisonment for up to five years and/or a fine not exceeding Rp50 billion.”
Ladies and Gentlemen,
I assure you that to any company that dares to manipulate and violate, we will take legal actions and according to constitutional authority vested in President of the Republic of Indonesia, we will seize whatever can be seized. We will protect the people. We will defend the interests of our people. We will ensure that the Indonesian people will never become victims of ‘greedynomics’—victims of those who relentlessly pursue maximum profit, deceive and exploit our people, and carry those profits out of the Republic of Indonesia. This must come to an end.
During my tenure as President of the Republic of Indonesia, we must not assume that those who are powerful and rich can do as they please. We shall not be daunted by your strength. We will not tremble by your wealth because your wealth comes from the people of Indonesia. My administration will not hesitate to stand up for the interests of the people.
We will implement Article 33 of the 1945 Constitution, which clearly stipulates that sectors of production vital to the state and affecting the livelihoods of the people shall be controlled by the state. This is the legacy of Bung Karno, this is the legacy of Bung Hatta, this is the legacy of Bung Sjahrir. I am convinced that they stood firmly on the side of truth.
On this foundation, today I am announcing, after careful deliberation by the Government, in order to safeguard the people’s right to receive unhusked rice that is accurate in measure, proper quality, affordable, large-scale rice milling enterprises must obtain a special license from the Government should they wish to continue operating in this sector. Otherwise, the large players may shift to other lines of business. Do not speculate upon the basic needs of the Indonesian people.
Ladies and Gentlemen,
In the past ten months, I, alongside the Red and White Cabinet, have been committed to tackling poverty through a holistic approach. We are committed to reducing extreme poverty to zero percent in the shortest possible time. To that end, for the first time in the history of the Republic of Indonesia, we are initiating the National Single Social and Economic Data (DTSEN) system.
The DTSEN shall remain our guiding principle. We shall ensure that Government programs for the poor are precisely targeted.
Through the DTSEN, we are able to identify those who are truly entitled to receive the benefits. We received reports that there were still wealthy individuals enjoying subsidies. From now on, we seek to ensure that it is targeted precisely.
Ladies and Gentlemen,
One of our efforts to break the chain of absolute poverty is the establishment of the People’s School. We have successfully built and opened 100 People’s Schools. We hope that next year this number will increase to 200, the following year to 300, and so forth.
These People’s Schools are intended for those in the lowest income deciles, deciles one and two, from those individuals that earn an extremely low income. They will be put in dorms. They will be provided with good quality education. This is our means to break the chain of poverty. Poor children, even if born to poor parents, must not be destined to remain poor. This is what we have been striving for, and this is what we are undertaking today.
What about other schools? We have also established top schools. We have built and will continue to build and complete top schools building to close the gap in the fields of science and technology. We have established the Garuda Excellence Schools, with an initial plan of 20, and also 80 Garuda Transformation Excellence Schools, existing schools will join this program. We have also added Taruna Nusantara Senior High Schools to be connected all across the farthest reaches of our nation.
This year, we shall also expand the establishment of medical faculties across Indonesia. We are lagging behind in producing medical doctors and dentists.
Ladies and Gentlemen,
Education is a priority. We have renovated at least 13,800 general schools and 1,400 Islamic schools, and this is still far from what we have planned. But this year is only the beginning. Next year, we will allocate greater findings to support this initiative. To case the gap, this year we will distribute 288,000 smart screen platforms. Smart TVs will be distributed to schools and to the remote areas. We hope that children in rural villages that have no good teacher can still get lessons delivered virtually by the best teachers.
To nurture future national leaders, as I have announced, we have launched the development of 20 Garuda Excellence Schools and 80 Garuda Transformation Excellence Schools.
Ladies and Gentlemen,
We also have built Integrated Taruna Nusantara High School all across the farthest reaches of the nation. To address the shortage of medical doctors and specialists, this year we shall open 148 study programs in 57 medical faculties across Indonesia, consisting of 125 specialist programs and 23 sub-specialist programs. We will also add 25 general medical and dentistry programs, as well as increase the quota of medical students receiving scholarships.
Ladies and Gentlemen,
To reduce the concentration of money circulation in urban areas, we have established 80,000 Red and White Village/Subdistrict Cooperatives. These cooperatives aim to strengthen local economies and create millions of new jobs. They also play a vital role in easing public hardship by providing essential goods, such as rice, cooking oil, subsidized LPG, and subsidized fertilizers at government-regulated prices.
We will also make it possible for people to have access to protein, to fish and meat at affordable prices.
To accelerate investment in the downstreaming of natural resources and other strategic sectors — while creating high-quality job opportunities — we, in collaboration with the House of Representatives, have launched Danantara. Danantara serves as the national investment authority, overseeing assets worth more than US$1 trillion. Its initiatives are expected to generate millions of quality jobs, particularly in the downstreaming sector. Alhamdulillah, the national unemployment rate has now fallen to the lowest level since the 1998 crisis.
Ladies and Gentlemen,
We are also building a fairer and more equitable healthcare system. The free health check has today been used by more than 18 million residents. We are upgrading 66 hospitals across 66 regencies. We have established the Sanur Special Economic Zone as an international-standard medical service hub so Indonesians will no longer need to seek treatment abroad.
We uphold Indonesia’s sovereignty on the global stage. We decided that Indonesia joined BRICS. Indonesia is being invited everywhere. It was an honor to be present at India’s Independence Day celebration and France’s National Day celebration. We have also successfully concluded trade negotiations with the European Union through the Indonesia–EU CEPA, the Comprehensive Economic Partnership Agreement, which in practice is a free trade agreement that allows us access to the European market with zero tariffs. We are also negotiating with the United States. Indonesia actively advocates for the recognition of Palestine and leading discussions on the two-state solution. At this very moment, two of our Hercules aircraft are operating in the Middle East, air-dropping aid into Gaza.
Ladies and Gentlemen,
We are working to strengthening law and justice. One key aspect in ensuring the enforcement of law and justice is that judges’ salaries must be adequate. We have increased the salaries of some judges by as much as 280%. We are also unhesitant in uncovering major corruption cases.
Together with the Indonesian National Defense Forces (TNI) and the Indonesian National Police (POLRI), we are ensuring that, as our Constitution states: “The land, water, and the natural resources contained therein are controlled by the state and utilized for the greatest benefit of the people.”
Ladies and Gentlemen,
A few years ago, we received reports that thousands, even millions of hectares of oil palm plantations were violating the law and regulations. Some were established inside protected forests. Some failed to report their actual plantation size. Some ignored summonses from the Financial and Development Supervisory Agency (BPKP).
We have issued Presidential Regulation Number 5 of 2025 on Forest Area Management, and today I report before this assembly that the Government of the Republic of Indonesia has reclaimed 3.1 million hectares from a potential 5 million hectares of oil palm land reported to be in violation, though not all have been verified. Of the 3.7 million hectares we verified as violating regulations, 3.1 million hectares have been reclaimed by the state.
Ladies and Gentlemen,
I must also report here that there was a court ruling, final and binding eighteen years ago, ordering that certain oil palm plantations be confiscated. Yet, no law enforcer at the time was willing to carry it out. I do not know why, but I have now ordered that those plantations be returned to state control. To that end, we deployed TNI units to escort the teams reclaiming the plantations, because resistance often occurs. If anyone dares to oppose the Government of the Republic of Indonesia, then we will confront them.
Next, we will also regulate mining operations that violate the rules. I have received reports from law enforcement that there are 1,063 illegal mines, and the potential losses to the state from these illegal mines are estimated at no less than Rp300 trillion.
Ladies and Gentlemen,
I am asking for the support of the entire People’s Consultative Assembly (MPR RI). I am asking for the support of all political parties in backing this effort for the sake of our people. And I issue this warning: whether powerful individuals, elites, or generals. Whether TNI generals, police generals, or retired generals, there will be no excuse. We will act in the name of the people.
And as a fellow party leader, I remind all party members, including those of my own party, Gerindra: if you are involved, act quickly, become a justice collaborator. Report it, because even if you are Gerindra, I will not protect you.
To the Commander of TNI and the Chief of Polri I have given instructions: if you are deployed to a province, use troops from another province, just in case your subordinates are involved in these plantations.
Honorable representatives of the people, you know the reality, don’t you? I have been Indonesian long enough. I know all the tricks. And as a senior former soldier, the younger ones had better not test me, I know.
If it is truly the people who are mining, then we will establish cooperatives. We will regulate and legalize them. But do not use “the people” as an excuse, while in fact smuggling hundreds of trillions.
Ladies and Gentlemen,
We must act with a sense of urgency.
With today’s increasingly geopolitical turmoil, Indonesia must have strong defenses to safeguard our wealth. For that reason, this year we have established six new regional military commands, fourteen Navy regional commands, three Air Force regional commands, one Air Force operations command, six Special Forces Command Groups, twenty territorial development brigades, one marine infantry brigade, one rapid reaction forces regiment, 100 territorial development battalions, five marine infantry battalions, and five rapid reaction forces battalions.
This step aligns with our defense principle, Sishankamrata — Total People’s Defense and Security System (Sistem Pertahanan dan Keamanan Rakyat Semesta) — in which all citizens and national resources are mobilized in totality for defense and security.
Ladies and Gentlemen,
We understand that war is destructive. We do not seek war. We must avoid war. That is why the foreign policy I uphold and declare is: “A thousand friends are too few, one enemy is too many.”
We remain committed to the path of non-alignment. We will not take sides with any bloc. This is what we declare everywhere: free and active. We see peace with all, especially with our neighbors.
We want to resolve all disputes. At times, challenges arise, such as border issues. These are legacies of colonialism. The Dutch came with the British, and once drew borders however they pleased. Now we are left with the consequences. They want to pit us against Malaysia. But we are friends with Malaysia. We are one kin. Yet the politics of divide et impera (divide and rule) is always present. Let us not be naïve. Let us not continually allow ourselves to be divided.
Ladies and Gentlemen,
Every element of the Indonesian nation must work hard so that every child can go to school and be properly nourished. We want our farmers and fishermen to once again be proud as the backbone of our nation, as food producers. The lives of our farmers and fishermen must be good and decent. Therefore, within the shortest possible time, starting this year, we will build 1,100 fishing villages, each consisting of around 2,000 households. That means 2 million households will live there. If one household consists of a father, mother, and three children, then 10 million people will live well. We will realize this soon. They will also repay our investment. So this is not direct cash assistance (BLT), this is not a handout. This is a loan, they will repay it in installments to the Government, because they will generate value.
We want our teachers to be motivated to teach because they are valued. We want ordinary people to smile because they no longer fear illness, hunger, or their children being unable to attend school. And we must create as many jobs as possible.
Our goal — the goal of independence — is wong cilik iso gemuyu — “the ordinary people can smile.”
Ladies and Gentlemen,
For this reason, let ne extend my appreciation to state institutions for their performance in running the machinery of government. The People’s Consultative Assembly of the Republic of Indonesia, the 1945 Constitution, the Unitary State of the Republic of Indonesia (NKRI), and Bhinneka Tunggal Ika. MPR RI consistently goes down to the people, explaining the Four Pillars of National and State Life. This is crucial because understanding the 1945 Constitution can save our economy, and can save our democracy.
The House of Representatives of the Republic of Indonesia (DPR RI), in the early period of 2024–2029, has discussed and passed 14 draft bills, and has determined the National Legislation Program for 2025 and the Medium-Term Program for 2025–2029, so that the planning, drafting, and deliberation of bills proceed in a structured and measurable manner.
In fulfilling its budgeting function, the House of Representatives of the Republic of Indonesia (DPR RI) has supported the Government in achieving justified efficiency in the State Budget, in line with the mandate of the 1945 Constitution. It has also contributed to the preparation of the 2026 State Budget Bill, which I will present later this afternoon. The House of Representatives of the Republic of Indonesia (DPR RI) has also carried out its oversight function thoroughly through 26 Oversight Working Committees and 3 Oversight Teams.
The House of Regional Representatives of the Republic of Indonesia (DPD RI) has produced more than fifty institutional decisions, demonstrating its active and strategic role in advocating for the aspirations and interests of the regions at the national level.
DPD RI has supported sustainable development by actively exercising its oversight function, providing input on budgeting matters, and monitoring and evaluating Regional Regulations and the Drafts to ensure alignment between regional regulations and national policies.
The Audit Board of the Republic of Indonesia (BPK RI) has consistently upheld its integrity and independence in carrying out audits and ensuring state finance accountability. In 2024, key achievements of BPK RI included: strengthening governance and accountability in state finance management; enhancing the quality of budget execution, enabling ministries and agencies to secure an unqualified audit opinion (WTP) for 97.7 percent of their 2024 State Budget financial reports; providing oversight and guidance for national priority programs; increasing the effectiveness of State Budget expenditures; and safeguarding tens of trillions of rupiah in cash and state assets.
From 2024 to mid 2025, the Constitutional Court of the Republic of Indonesia (MK RI) successfully adjudicated hundreds of cases, including judicial reviews, and disputes over general and regional election results. The Court has carried out its duties promptly and efficiently, issuing landmark rulings that serve as important milestones in strengthening democracy and safeguarding the constitutional rights of all citizens.
The Supreme Court of the Republic of Indonesia (MA RI) continues to advance judicial reform, modernize case management, promote the peaceful and prompt resolution of civil disputes, and adjudicate criminal cases in accordance with the principles of restorative justice.
With the implementation of the electronic justice system (E-Court) at the Constitutional Court of the Republic of Indonesia (MK RI), the number of registered cases in district courts has increased by 30.84 percent compared to the previous year. Civil disputes involving claims of less than Rp500 million now make up 68 percent of all cases, while the rate of dispute resolution through mediation has reached 28 percent. These results demonstrate the Supreme Court’s commitment to realize a modern, efficient, cost-effective, and accessible justice process to all Indonesians.
The Judicial Commission plays a strategic role in advancing the welfare of the people and the progress of Indonesia by safeguarding judges’ integrity and strengthening public trust in the judge’s integrity. Between 2024 and July 2025, the Judicial Commission carried out the selection of Supreme Court and Ad Hoc justices, resulting in the candidacy of nine Supreme Court justices and three Ad Hoc justices.
The Judicial Commission has received 3,752 public reports alleging violations of the Judges’ Code of Ethics and Conduct and has recommended sanctions against 116 judges.
Let me also express my sincere appreciation to Bank Indonesia, the Financial Services Authority (OJK), the Deposit Insurance Corporation (LPS), the Corruption Eradication Commission (KPK), the General Election Commission (KPU), the Election Supervisory Agency (Bawaslu), the Indonesian Ombudsman, the National Human Rights Commission, and other national institutions for their valuable contributions to the nation’s progress in accordance with their respective roles and mandates.
Finally, I would like to take this opportunity to convey my sincere appreciation to all patriotic entrepreneurs who have created employment opportunities in Indonesia, invested their capital within the country, and retained the proceeds of their businesses domestically.
Make no mistake, not all great entrepreneurs conform to greedynomics principles. Actually, we call out many of them to jointly build Indonesia. I told them that they should be part of Indonesia Incorporated.
Indonesia Incorporated is our vision of economic development in which all stakeholders and players move in unison as a national team. The strong and great ones play their role. The medium ones play their role. The micro ones play their role with our support. The poor ones are empowered. It is what we call Indonesia Incorporated.
I believe that if we eradicate poverty, if the people living in poverty have income, they will have purchasing power. They will buy goods from factories owned by large corporations. That is what we call a mutually reinforcing chain economy, and not mutually destructive.
Ladies and Gentlemen,
I believe that by uniting, by working hand in hand, by realizing a democracy rooted in our culture, and by building an economy in accordance with the blueprint of our nation’s founders, inshaallah, Indonesia will grow stronger and more prosperous. We have set clear milestones under our theme: unity, sovereignty, prosperity for the people. People should be prosperous. If the people are not prosperous, I say we have failed as an independent country.
We will succeed as an independent nation only if our people prosper. Therefore, let us move forward hand in hand. We may differ in views, but our purpose remains one. To those outside the Government, your voice is not only welcome. It is essential. Oversight, correction, and even sharp criticism are necessary for our growth. At times, criticism may feel difficult, but it should never be silenced. So, I say: do not stop criticizing. I also call upon our coalition partners: within the coalition itself, we must have the courage to oversee one another and to make corrections where needed. No one should ever feel above the law. No one is beyond accountability.
That is the message I wish to convey. Thank you.
Honorable assembly,
Happy 80th Anniversary of the Republic of Indonesia!
Perhaps this very moment is a sign of how strong our democracy has become. Today, as the 8th President of the Republic of Indonesia, I have the honor of leading the commemoration of our nation’s 80th year of independence.
It seems destined that on this 80th anniversary, it is the 8th president who stands before you. And I am living proof that our democracy truly works. I ran in elections five times; I lost four times. But today by the will of the people and the grace of God, I stand here to serve our nation.
Thank you.
Thank you, Ladies and Gentlemen.
Wassalaamu’alaikum warahmatullahi wabarakatuh,
Shalom,
Salve,
Om shanti shanti shanti om,
Merdeka! Merdeka!
Jakarta, 15 August 2025
President of the Republic of Indonesia
PRABOWO SUBIANTO