Remarks of President of the Republic of Indonesia at the 2024 National Development Planning Conference (Musrenbangnas) at the Jakarta Convention Center (JCC), DKI Jakarta Province, May 6, 2024

Bismillahirrahmanirrahim
Assalamu’alaikum warahmatulllahi wabarakaatuh.

Good morning,

May peace be upon us all,

Shalom,

Om swastiastu,

Namo Buddhaya,

Greetings of Virtue.

Distinguished Vice President Ma’ruf Amin, heads of high state institutions in attendance, Coordinating Ministers, Ministers, Governors, Regents, and Mayors;
Distinguished Regional Secretaries, Heads of Regional Development Planning Agency (Bappeda) from all over Indonesia;
Ladies and Gentlemen,

Currently we are facing an uneasy situation and difficult challenges. Global economic growth is projected to grow by only 3.2 percent, and the impact of COVID-19 is still being felt by us all. We know that several countries are in a recession; Japan, the United Kingdom, and some European countries are on the brink of recession. Therefore, we have to be prudent in managing our fiscal. Do not let every Rupiah be misused and we have to pay close attention to priority scale. Nowadays, all countries are fearful and deeply concerned about three things: first, oil prices; second, loan interest rates. Everyone is worried about these issues considering that a slight increase in loan interest rates will significantly burden the fiscal situation.

We must be careful in managing every Rupiah of our budget. We establish a National Long-Term Development Plan (RPJPN), a National Medium-Term Development Plan (RPJMN), and the Government Work Plan (RKP) every year. However, the plans have yet to be in line with our bigger picture. Therefore, synchronization plays a key role.

Let me cite an example. The Central Government has built a dam. The primary irrigation has also been built. But the secondary, tertiary irrigations are not constructed, so water cannot be channeled to the rice fields. Regarding ports construction, ports are built by the Ministry of Transportation, but the roads leading to these ports spanning only 4 km or 5 km that should be built by the regional governments, have not been constructed. This is indeed an example of disharmony. Everything must be in line with our national RPJP, RPJM, and RKP. All ministries and regional governments must be in line.

To that end, I remind all heads of ministries, when you have a development project, let the regional governments know about it. Ask their permissions, kulo nuwun, to build a dam and ask their readiness about the developemt of secondary, tertiary irrigations. If they are not ready, ask other regional governments. When they were asked about their readiness, most of governors, regents, mayors always replied, “Yes, sir! I’m ready.” However, when the project is done, although they have expressed their readiness, they replied, “It’s hard to realize it, sir. We don’t have enough Regional Budget, sir. It has been allocated for other projects.” That’s why I earlier said about the importance of syncronization and Regional Secretaries as well as Bappeda must play a key role because they work with the Regional Legislative Councils on daily basis.

As of today, 42 dams have been built over the past 10 years and insyaallah, while  around 60 dams will be completed by the end of this year or 54 dams if there are slight delays, since some may not be completed on time though we have expedite the project. Nevertheless, insyaallah, they will surely be completed. Moreover, we have completed 2,049 km of toll roads, 5,833 km of national roads, 25 new ports, and 25 new airports. But, this is not enough. Once toll roads are built, the Bappeda must plan where they will be connected to, whether this main road must be connected to tourism areas, productive plantation areas, productive agricultural areas, or craft centers. This should be the responsibility of the regional governments.

However, let us, the Central Government, know when you, regional governments, are not able to do the project, “Sir, we have a plan to build a road and connect it to the craft centers, but we are sorry, sir, we are not able to do this.” Do not you worry, we have Presidential Instruction on Regional Roads. Last year, Rp14.6 trillion was spent on repairing damaged regional roads. Another Rp15 trillion was allocated this year to build roads that potentially bring economic returns. Don’t let roads only be used for daily purposes; there should be roads for logistics and roads connecting productive centers for agriculture and plantations; those will bring productivity and generate economic returns. That must be estimated, calculated, and decided by the regional governments.

A dam, for example, should not only be functioned for agriculture, but also for raw water source. The construction of the main pipeline has indeed completed, but the construction of pipe network to households is not finished yet. Why? The business of the regional-owned tap water company (PDAM) did not make a profit, so they were not able to build pipe network for households. It should be financially supported by the Regional Budget, but until now the project to build household pipe network for drinking-water has not been carried out.

I earlier told Head of the National Development Planning Agency that a new Presidential Instruction will be prepared to build drinking water pipe network for households. But not all projects must be done by the Central Government. We noticed that when we issued Presidential Instruction on Regional Roads, Drinking Water Pipe Network, most of you were happy and said, “alhamdulillah,” and then which one will you build? This must become our concern so we can build productive projects considering the need of our people.

Therefore, the synchronization of the preparation of the 2025 RKP must be based on these principles: firstly, the programs must be in line and harmonious. Do not let the Central Government and regional governments take different steps. Do not let it happen. Everything must be in line, everything must be in synergy. If the Central Government plans to increase food production, but the regional governments carry out convertions of rice fields into property developments, that is indeed a desynchronization.

Secondly, the programs must be result-oriented and generate economic returns. Therefore, we have to focus. I have repeatedly emphasized this: the budget should not be distributed in small amounts to various departments without clear priorities. It’s unclear which areas are prioritized when there’s a 10 percent budget increase, every agency also gets 10 percent. The priorities are not clear. The budget should not be used excessively for meetings and comparative studies. These practices must be left behind, should not happen again in the future.

Thirdly, programs must be well-targeted and strategic. This means that the Regional Budget and the State Budget must truly have benefits. Do not let budgets intended for stunting prevention at health centers end up being used to build fences around the health centers. It has happened, don’t you dare to say it didn’t happen. There is no connection between stunting and fences. Therefore, I hope this National Development Planning Conference can serve as a “connecting screw” for development agendas of the Central Government and governments at provincial and regional levels so that everything is in line, harmonious, and well-targeted, and the results bring benefits to the people.

That concludes my speech on this auspicious occasion. By saying bismillahirrahmanirrahim, I officially open the 2024 National Development Planning Conference.

I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.

(AP/RAS/MMB)