State of the Nation Address of the President of the Republic of Indonesia at the Annual Session of the People’s Consultative Assembly (MPR) of the Republic of Indonesia and the Joint Session of the House of Representatives (DPR) of the Republic of Indonesia and the Regional Representative Council (DPD) of the Republic of Indonesia on the Occasion of the 77th Anniversary of the Proclamation of Independence of the Republic of Indonesia
Assalamu’alaikum Warahmatullahi Wabarakatuh,
May peace be upon us all,
Greetings of Virtue.
Distinguished Vice President of the Republic of Indonesia Bapak Prof. Dr. (H.C.) K.H. Ma’ruf Amin and Ibu Wury Estu Ma’ruf Amin;
Distinguished Ibu Hajah Prof. Dr. (H.C.) Megawati Soekarnoputri, the Fifth President of the Republic of Indonesia;
Distinguished Ibu Hajah Shinta Nuriyah Abdurrahman Wahid, the wife of the Fourth President of the Republic of Indonesia;
Distinguished Bapak Try Sutrisno, the Sixth Vice President of the Republic of Indonesia;
Distinguished Bapak Hamzah Haz, the Ninth Vice President of the Republic of Indonesia;
Distinguished Bapak Muhammad Jusuf Kalla, the Tenth and Twelfth Vice President of the Republic of Indonesia;
Distinguished Bapak Prof. Dr. Boediono, the Eleventh Vice President of the Republic of Indonesia;
Honorable Speaker, Deputy Speakers and Members of the People’s Consultative Assembly (MPR) of the Republic of Indonesia;
Honorable Speaker, Deputy Speakers and Members of the House of Representatives (DPR) of the Republic of Indonesia;
Honorable Speaker, Deputy Speakers and Members of Regional Representatives Council (DPD) of the Republic of Indonesia;
Honorable Chairpersons, Deputy Chairpersons and Members of State Institutions;
Your Excellencies Ambassadors of Friendly Countries and Leaders of International Organizations and Institutions;
Distinguished Ministers of the Indonesia Onward Cabinet, Commander of the Indonesian National Defense Forces (TNI), Chief of the Indonesian National Police (Polri), the Attorney General, and Head of the State Intelligence Agency (BIN);
Distinguished Chairpersons of Political Parties,
My Fellow Citizens,
Distinguished Ladies and Gentlemen,
The challenges we face today are very challenging, very difficult, not easy. All countries in the world are facing the same tough challenges. Health crisis due to COVID-19 pandemic has not been fully recovered and the global economic situation has not been fully restored either. War broke out in Ukraine, and food crisis, energy crisis, and financial crisis became inevitable. We are aware that as many as 107 countries are affected by the crisis and some of them are predicted to go bankrupt. 553 million people must face the threat of extreme poverty, and 345 (million) people must face the threat of critical food shortage and famine.
The challenges are not easy for the world and for Indonesia. We must face those challenges with prudence, with vigilance.
Nevertheless, amid the tough challenges, we must be grateful that Indonesia is one of the nations that have overcome the global crisis. Our country Indonesia is one of the nations that have overcome COVID-19 pandemic, and one of five countries with the highest vaccination rate in the world, with 432 million vaccine doses injected.
Our inflation rate is under control, in the range of 4.9%. That number is significantly lower than the average inflation rate in the ASEAN countries, around 7%, and is significantly lower than the average inflation rate in the developed countries, around 9%.
Even, by mid-2022, the State Budget also recorded a surplus of Rp106 trillion. Therefore, the Government is able to provide fuel, LPG, and electricity subsidies of Rp502 trillion in 2022, so that fuel prices in the community do not soar.
In addition, the economy managed to record a positive growth of 5.44% in the second quarter of 2022. The trade balance also recorded a surplus for 27 consecutive months, and in the first half of 2022 the surplus was around Rp364 trillion.
We should be grateful for these achievements. Indonesia’s economic fundamentals remain strong, in the midst of global economic turbulence. On the one hand, we must remain vigilant and careful. On the other hand, we must continue with the nation’s big agendas to achieve an Advanced Indonesia.
My Fellow Indonesians,
In facing the COVID-19 pandemic that hits the entire world, Indonesia has proven herself to be a resilient nation. Hamlet and village communities protect and share with each other. Ulemas, religious leaders, and traditional leaders actively assist the communities. Socio-religious organizations move quickly to help the communities. Health workers, the TNI, and the Polri, as well as ranks of bureaucracy synergize and cooperate with each other. State institutions are also supporting the Government in dealing with this uncertainty.
If we are able to handle the pandemic well, God willing, we must also be able to well manage other big agendas. This is our first capital to build our country, Indonesia.
Indonesia’s second capital is abundant natural resources. A vast area with the greatest biodiversity in the world is indeed a huge potential for Indonesia if we can manage it in wise and sustainable manners.
There is one condition: the downstreaming and industrialization must be done in our homeland to maximize added value for the sake of national interests. It will open more job opportunities, boost export, generate foreign exchange, increase state revenues, and bolster economic growth.
Our third capital is demographic bonus. Our large population dominated by young, productive age and rising people’s purchasing power will be the driving force that stimulates national economy in facing global competition.
The fourth capital is international trust which is increasing exponentially. Russia and Ukraine have welcomed Indonesia as the bridge for peace. We are acknowledged by major countries amid rising geopolitical heat. The United Nations appointed Indonesia as a member of the Champions of the Global Crisis Response Group for global crisis handling, including food crisis, energy crisis, and monetary crisis. In 2022, we hold the Presidency of the G20, an international forum made up of the world’s largest economies. Next year, we will assume the Chairmanship of ASEAN. It indicates that we top the global leadership and have a great opportunity to promote international cooperation.
High trust from the international community can be felt in our country. Structural reforms for business competitiveness and climate are continued to be made. Ecosystem for investment and MSMEs’ growth have been improved. Downstreaming and manufacturing sectors in the country grow rapidly. Investment growth has also increased significantly, 52% of which is already outside Java island. It means our economy not only grows exponentially, but also grows evenly towards an Indonesia-centric development.
My Fellow Citizens,
With such great capitals and opportunities, we have a big chance to develop an inclusive, fair, and sustainable Indonesia.
Firstly, downstreaming process and industrialization of natural resources must be carried on.
For instance, downstreaming of nickel industry has multiplied export of iron and steel by 18 times. I remember in 2014, the export value only reached Rp16 trillion. However, it increased to Rp306 trillion in 2021 because it had been exported as semi-finished goods and finished goods. By the end of 2022, we hope this figure can reach Rp440 trillion. That is only from nickel. Once again, that is only from nickel. In addition to tax revenue, the foreign exchange is also expected to rise so Rupiah exchange rate will remain stable.
To date, Indonesia has become the key producer of lithium battery in global supply chain. Electric vehicle manufacturers from the Asian and European countries as well as the United States have invested in our country. Besides nickel, the Government will also continue to encourage downstreaming of bauxite, copper, and lead. We need to be brave, we need to build an integrated ecosystem for industry in our country which will support the development of global green economy ecosystem.
Secondly, apart from downstreaming, the optimalisation of green energy and green economy sources must be developed. Nursery and rehabilitation of tropical and mangrove forests as well as marine habitats will continue to be carried out and potentially become carbon sinks.
Green energy from solar thermal, geothermal, wind, ocean waves, and bio energy will attract manufacturers of low emission products. Green industry zone in North Kalimantan will become the biggest Green Industrial Park in the world. I believe that we will become a competitive green product manufacturer in the international trade.
This effort could be directly synergized with a program to improve food production and bio energy. The utilization of marine biodiversity wisely will become the biggest source for food, pharmaceutical, and energy products. Similarly, our plantation products, for example palm oil, evidently becomes the biggest CPO supplier globally.
In regards to rice consumption, we no longer import rice for consumption for the last three years. Dam and irrigation constructions have supported the growth of our national productivity. Alhamdulillah, we have just received an award from the International Rice Research Institute, which was witnessed by the FAO, because we are deemed capable of achieving food security and food self-sufficiency since 2019.
Thirdly, legal, social, political, and economic protections for society must be continuously bolstered. The realization of civil rights and democratic practice, women’s political and marginalized community rights must be guaranteed. Law must be upheld equitably and indiscriminately.
Safety, social order, political stability are pivotal. Senses of security and justice must be guaranteed by the state, especially by the law enforcement officials and judicial institutions.
Similarly, corruption eradication remains the top priority. Therefore, the Polri, the Attorney General’s Office, and the Corruption Eradication Commission (Komisi Pemberantasan Korupsi/KPK) continue to take actions. Major corruption cases, such as Jiwasraya, the Indonesian Armed Forces Social Insurance (Asuransi Angkatan Bersenjata Republik Indonesia/ASABRI), and Garuda Indonesia have successfully been revealed and thorough restructuration has begun. The delayed rescue of state assets, for example the Bank Indonesia Liquidity Assistance (Bantuan Likuiditas Bank Indonesia/BLBI) continues to be accelerated and has shown an outcome. Corruption Perceptions Index of Transparency International had levelled up from 37 to 38 in 2021. The Anti-Corruption Behaviour Index of Statistics Indonesia (Badan Pusat Statistik/BPS) has also improved from 3.88 to 3.93 in 2022.
The Government keeps paying serious attention to the settlement of the past gross human rights violations. Bill on the Truth and Reconciliation Commission is under discussion. Furthermore, the findings of the Human Rights National Commission (Komisi Nasional Hak Asasi Manusia/Komnas HAM) continue to be followed-up. I have also signed Presidential Decree on the Formation of Nonjudicial Settlement Team for the Past Gross Human Rights Violations.
My Fellow Citizens,
I emphasize that agrarian reforms, social forestry, and land certification must continue. Various social assistance programs will also continue with better synergy and data. Training and labor assistance programs must be improved. Fishermen, farmers, labors, informal workers, and persons with disabilities can participate in these programs. With this regard, we had hosted the ASEAN Para Games in Solo, and, alhamdulillah, we were crowned the overall champion.
Fourthly, MSMEs must be continuously supported to level up. We continue to boost economic digitation which has led to the development of two decacorns and nine unicorns in order to empower micro, small, and medium enterprises. As many as 19 million MSMEs have joined digital ecosystem and it is targeted that 30 million MSMEs will join digital economy by 2024.
Various low interest loans will not stop. MSMEs’ products listed in the Government’s e-catalogue are expected to increase sales. At the same time, the State Budget, Regional Budget, and State-owned Enterprises obligation to procure domestic products must consistently be overseen.
Fifthly, the construction of National Capital of Nusantara (IKN) must not stall. The IKN is not only for state civil apparatus, but also a city of innovators and entrepreneurs. The city will not only house government offices, but it will also become a new economic driving force. It will not only be an ordinary city, but it will be a forest city with world class education and health services. The construction of the Central Core of the Government Area is indeed financed by the State Budget. However, 80% of private investors are invited to participate.
My Fellow Citizens,
All the aforementioned agenda must be supported by excellent Indonesian people. Therefore, in the health sector, stunting rate must be immediately reduced. Promotive and preventive services as well as medical services must be strengthened and equitable.
Access for school age children to education services and quality services must be prioritized. Students and university students must be introduced to work environment at an early age. Students’ interests in science, technology, arts, and sports must be supported and appreciated.
Noble values, Pancasila (the Five Principles, the Indonesian State Ideology), Bhinneka Tunggal Ika (unity in diversity), and patriotism are the main pillars. Arts and local traditions with the spirit of nationalism must be kept alive. Literatures and films produced by young artists must be continuously supported. We will increase Cultural Endowment in proportion to the Government’s fiscal ability.
Stages on the General Elections are currently prepared by the General Elections Commission (Komisi Pemilihan Umum/KPU) and we must support the whole processes. I would like to remind everyone to avoid identity politics, to avoid religious politics, and to avoid social polarization. Our democracy must be more mature and the national consolidation must be strengthened.
I would like to extend gratitude to the ulemas, religious figures, public figures as well as culture bearers, who have given their contribution to strengthen the national values and to maintain the nation’s unity and integrity.
I also would like to ask support from all state institutions to maintain and to build democracy in our country, in order to reinforce the State Ideology.
I highly appreciate the efforts of the MPR in encouraging the manifestation of the State Ideology Pancasila, reviewing the content and legal form of the State Policy Guidelines (Pokok-Pokok Haluan Negara/PPHN), and at the same time, initiating international cooperation in addressing various global challenges.
Support from the DPR in tackling health and economic crises has helped the Government. The DPR has also supported various massive transformation, including Law on New Capital of Nusantara, Law on Harmonization of Tax Regulations, and Law on Sexual Violence Crimes.
In the meantime, the DPD, based on its authority, has played pivotal role in drafting a number of bills, particularly bills on the Special Autonomous Region and the establishment of new provinces.
Legal service reforms in the Supreme Court (Mahkamah Agung/MA) are proven to improve the quality of case resolutions. The MA stays at the forefront of restorative justice. It has also improved access to equitable legal services for the people.
The Constitutional Court (Mahkamah Konstitusi/MK) has improved service to constitutional enforcement effectively. Electronic-based legal system offers easier access to the people. The MK’s role as the host of the World Conference on Constitutional Justice also deserves an appreciation.
The Indonesian Audit Board (Badan Pengawas Keuangan/BPK) has maintained synergy between quality of state finance governance and flexibility in facing crises. This is very helpful to the Government. The plan to hold Supreme Audit Institution (SAI)-20 has also strengthened Indonesia’s leadership in the G20.
The Judicial Commission (Komisi Yudisial/KY) keeps providing excellent services in overseeing clean and dignified judicial system. The handling of people’s reports on judicial institutions has helped to bring sense of justice to the people.
I would also like to express my gratitude to other state institutions for their respective authorities and responsibilities, including the central bank Bank Indonesia, the Financial Services Authority (Otoritas Jasa Keuangan/OJK), the Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS), the Corruption Eradication Commission (Komisi Pemberantasan Korupsi/KPK), the Indonesian Ombudsman, the KPU, the General Election Supervisory Agency (Badan Pengawas Pemilihan Umum/Bawaslu), the National Commission on Human Rights, and other national institutions.
My Fellow Citizens,
I reiterate that we must always remain vigilant, cautious, and alert. Crisis after crisis still haunts the world. World geopolitics threatens regional security.
We must always “Eling lan Waspodo”, must be mindful and always vigilant. We must always be careful in taking actions. We must always be careful in making decisions.
I reiterate that the nation’s grand agenda must not stop. Great efforts must continue to be made. There are at least five big agendas that I have emphasized earlier.
I call on all components of the nation to unite, to support the big agenda for the achievement of Advanced Indonesia with commitment, with hard work, with innovation and creativity.
May Allah the Almighty always bless and ease the endeavors of the Indonesian nation towards an Advanced Indonesia that we aspire to be.
Let us unite for an Advanced Indonesia.
Indonesia recovers faster, rises stronger.
Long Live the Republic of Indonesia!
Long Live the Land of Pancasila!
I thank you.
Wassalamualaikum warahmatullaahi wabarakaatuh,
Om Shanti Shanti Shanti Om,
And for the record, the customary regional attire that I am wearing is Paksian attire from Bangka Belitung province. It has the pattern of bamboo shoots, which symbolizes harmony and we chose the color of green as it contains the philosophy of calmness, hope, and growth.
I thank you.