Highlight of First 100 Days of the Red and White Cabinet

“Within three months, we have delivered our results to the people,

our policies are in favor of the people, in favor of the interests of the country.”

 — President of the Republic of Indonesia Prabowo Subianto, at Plenary Cabinet Meeting, January 22, 2025 —

On Sunday, October 20, 2024, Prabowo Subianto and Gibran Rakabuming Raka pledged their oath of office as President and Vice President of the Republic of Indonesia before the leadership and members of the People’s Consultative Assembly of the Republic of Indonesia (MPR RI). Later in the evening, President Prabowo Subianto, accompanied by Vice President Gibran Rakabuming, immediately announced the cabinet members who would assist them in their term of office from 2024 to 2029. The cabinet was named the Red and White Cabinet, a cabinet that brings together professionals, bureaucrats, academics, community leaders, and politicians for one common interest, namely the national interest, the interests of the nation and state.

“The cabinet that we have agreed on, we named it the Red and White Cabinet, to become a symbol of unity, a symbol of togetherness, a symbol of nationalism,” President Prabowo said during the first Plenary Cabinet Meeting, at the Presidential Office, Jakarta, October 23, 2024.

The Tidar Valley bore witness to the determination of the Red and White Cabinet to unify their vision and harmonize their steps in executing the Asta Cita (the Eight Missions), in order to achieve the vision of Golden Indonesia 2045. In this historic place, for a period of three days, the cabinet members were equipped with the policy direction of President Prabowo’s administration and exercised discipline and teamwork to serve the people and realize a just, prosperous, and flourishing Indonesia.

“I truly feel the hope of all the people of Indonesia. Therefore, my aides and I, along with the ministers, coordinating ministers, and the personnel who are currently members of the Government of the Republic of Indonesia, are committed to working hard to serve the people of Indonesia,” President Prabowo said.

And now, on January 29, 2025, the Red and White Cabinet has executed the mandate to serve the Indonesian people for one hundred days. One hundred days serve as a cornerstone of the Government’s long journey to make major changes, improve, innovate, and strive to provide the best for the interests of the nation and the people of Indonesia. During this period, the Government has conducted various programs and taken a series of policies.

Debt write-off for MSMEs
The policy to write off bad debts for Micro, Small, and Medium Enterprises (MSMEs) is outlined in Government Regulation No. 47 of 2024, which was signed by President Prabowo on November 5, 2024. This policy is a major move taken by the Government to ease the burden on MSMEs, especially in the sectors of agriculture, plantations, livestock, fisheries, and marine.

“The Government wishes to help our brothers and sisters, producers who work in agriculture, MSMEs, and fishermen who are very important food producers. They can carry on their businesses and become more empowered for the sake of the nation and state,” President Prabowo stated.

The MSMEs debt write-off program is carried out in stages. In the initial stage, it will reach 67,000 MSMEs actors with debt write-offs valued at Rp2.4 trillion. The total value of bad debts to be written off reaches Rp14 trillion for one million MSMEs actors across the country.

Implementation of Simultaneous Regional Elections
Following a long preparation phase, on Wednesday, November 27, 2024, the Indonesian people exercised their voting rights in the 2024 simultaneous regional elections (pilkada). This democratic fiesta was held in 545 electoral regions, consisting of 37 provinces, 415 regencies, and 93 cities, and proceeded safely and peacefully.

Improving Teachers’ Welfare
Education is the key to the revival of a nation and teachers are at the forefront of educating the nation. Therefore, the Government continues to strive to improve the welfare of teachers across the country. In 2025, the budget allocation for teachers’ welfare, both state civil apparatus (ASN) and non-ASN, reached Rp81.6 trillion, an increase of Rp16.7 trillion from the previous year.

Aligned with improving teachers’ welfare, the Government also strives to provide better quality and more equitable education services. A budget of Rp17.15 trillion was allocated for the rehabilitation, revamp, and renovation program of 10,440 public and private schools.

Increase in the National Minimum Wage
In the labor sector, the Government has decided to raise the average national minimum wage by 6.5 percent in 2025. The decision was announced in person by President Prabowo Subianto on November 29, 2024. The minimum wage acts as a very important social safety net, especially for workers who are employed for less than 12 months. The increase is expected to improve the economy and people’s welfare while maintaining business competitiveness.

“Labors welfare is extremely important. We will continue to fight for the improvement of their welfare,” the President said.

Reduction in Airfare Prices
During important occasion for the public, such as Christmas and New Year holidays, President Prabowo pays attention to these moments. The policy to lower airfare prices was in place to ease the burden on the public while encouraging economic activity and tourism within the country during the 2025 Christmas and New Year holidays. The 10 percent reduction is valid from December 19, 2024 to January 3, 2025. Government collaboration with various elements, from airlines, state-owned enterprises (SOEs), to fuel providers was the key to this policy.

“It is perhaps the first time in several years that we have been able to lower airfare prices. Normally towards the end of the year or on holidays, prices will rise, so we were able to lower airfare prices a little to help our people. However, we remain vigilant so that the reduction in airfare prices would not harm the aviation industry,” the President said.

This reduction is part of the Government’s efforts to ensure the safety, ease, and convenience of the people in celebrating Christmas and New Year. The cabinet worked together to ensure the availability of food, smooth supply of fuel, public security, and adequate transportation facilities and infrastructure for the mobility of people and goods.

Increase in Government Purchase Price (GPP) & Suspension of Rice Imports
The goal of food self-sufficiency as laid out by President Prabowo will never be achieved without the support of farmers all over the country. Therefore, within the first hundred days, the Government issued various farmer-oriented policies. First, it increased the Government Purchase Price (HPP) for rice grain from Rp6,000 to Rp6,500 and corn from Rp5,000 to Rp5,500. The Government also made the decision to absorb all rice grain and corn production from farmers at these set prices. In addition, the Government also decided to suspend rice imports. These policies are good news for farmers and become fundamental steps for the Government in achieving national food self-sufficiency.

The Government’s commitment to accelerate food self-sufficiency is also evident from President Prabowo’s focus on the development of food estate in a number of regions in the country. President Prabowo’s first working visit after being sworn in was in Merauke, South Papua to inspect the food estate. Merauke is projected to become one of the locations for the development of food production centers in eastern Indonesia.

Rollout of Economic Stimulus Package
The increase in the value-added tax (VAT) rate from 11 to 12 percent, as mandated by law, is inevitable. However, listening to the people’s voices, President Prabowo decided that the VAT rate increase will only be imposed on luxury goods and services that have been subject to Luxury Goods Sales Tax (PPnBM), such as private jets, yachts, and other luxury goods consumed by the affluent. In other words, there is no VAT increase for goods and services other than those classified as luxury goods. Furthermore, as for goods and services deemed basic necessities, they will remain exempt from VAT or be subject to a zero percent VAT rate. The President also underlined the Government’s determination to reform the national tax system with a people-oriented approach.

“I believe it is obvious that the Government will continue to strive to create a tax system that is just and people-oriented,” President Prabowo said.

Aligned with the implementation of this tax policy, the Government also launched a stimulus package with a value of Rp38.6 trillion targeting low-income households, the middle class, and the business sector, especially for the protection of MSMEs and labor-intensive industries. The stimulus includes a monthly assistance of 10 kilograms of rice for 16 million beneficiaries, a 50 percent electricity discount for customers with a maximum power of 2,200 volts, income tax (PPh) article 21 incentives for employees with salaries of up to Rp10 million per month, and income tax exemptions for MSMEs with turnover below Rp500 million per year.

Free Nutritious Meal Program
To fulfill our commitment to the people, the Government has gradually rolled out Free Nutritious Meal (MBG) program in early 2025. The Free Nutritious Meal is the Government strategic program to create excellent human resource by ensuring proper access to nutritious food. The program will have a positive impact on multiple sectors, including education, health, people’s economy, and food security. The Government aims to make MBG program accessible to all children by 2025.

“Thank God, the Free Nutritious Meal program has been running. From its launch on January 6 and to date the program has already reached 650,000 schoolchildren across 31 provinces. From January to April 2025, this program aims to target 3 million schoolchildren. Between April and August 2025, it will reach 6 million schoolchildren. By September, we hope to cover 15 million schoolchildren, and by the end of 2025, our target is to ensure that all Indonesian children have access to nutritious food,” President Prabowo said.

Lowering Hajj Pilgrimage Cost
The Government and the House of Representatives (DPR) of the Republic of Indonesia have agreed on Hajj Pilgrimage Cost (BPIH) for 1446 Hijr calendar or 2025, which is set at Rp89.4 million, a decline of Rp4 million compared to the average cost in 2024. This decline also impacts the Hajj Travel Costs (Bipih) that pilgrims must bear, lowering the amount by around Rp600,000. President Prabowo underscored that the reduction in hajj cost must not compromise the quality of services provided to Indonesian Hajj pilgrims.

“Perhaps for the first time in the history of the republic, we lowered the cost of the Hajj pilgrimage. Even then, I am by no means satisfied. I ordered them to look for more opportunities, to look for more possibilities to lower the prices and to continue working on efficiency, efficiency, and efficiency,” he said.

Foreign Exchange Export Proceeds (DHE) Policy Update
The Government also updated Foreign Exchange Export Proceeds (DHE) policy and required exporters to deposit all DHE received from natural resources for at least a year. This policy is adopted to maintain national economic resilience and stability, as well as to enhance the optimal use of natural resources for people’s welfare.

“All companies receiving credits from state-owned banks are obliged to deposit the export sales proceeds in banks in Indonesia. I think it’s reasonable. They do business using funds sourced from the people of Indonesia. After making sales, it is only natural to deposit their money in Indonesia’s banks,” the Head of State said.

Infrastructure Development
The sustainability of infrastructure development, particularly to support the Government’s priority programs such as food and energy security is also a focus in the first hundred days of the Red and White Cabinet. On January 20, 2025, President Prabowo Subianto officiated 37 strategic electricity projects, consisting of 26 power plants that produce more than 3.2 gigawatts of energy, as well as 11 transmission networks and substations in 18 provinces. It is a part of the Government’s efforts to deliver energy self-sufficiency within the next five years. In addition, the President also expressed optimism that Indonesia will become one of leading players in global energy transformation.

The Government not only relies on the State Budget financing but also encourages private sector participation to finance infrastructure development in Indonesia.

“Some say I order to stop infrastructure projects. That’s not true. I did not stop them, I altered them. I will hand over most of infrastructure projects to private sector,” he stated.

Rapid Disaster Response
Natural disaster response in several regions has also become the Government’s focus. A joint team comprising of the National Disaster Management Agency (BNPB), Ministry of Social Affairs, the Indonesian National Defense Forces (TNI), the Indonesian National Police (Polri), and the regional governments, has acted swiftly to address natural disaster that hit the country, including the eruption of Mount Lewotobi Laki Laki in East Flores, East Nusa Tenggara province, and landslide in Pekalongan, Central Java province. During his state visit to Washington DC, the United States of America, President Prabowo still took his time to monitor the situation at home, particularly regarding disaster response. On Tuesday, November 12, 2024, the President held a limited meeting with the Red and White Cabinet via video conference, discussing the progress of handling the Mount Lewotobi Laki Laki’s eruption.

“I want to get an update about what happens in Mount Lewotobi Laki Laki, in East Flores, East Nusa Tenggara,” he said during the opening of a limited meeting.

Moreover, President Prabowo also emphasized the importance of disaster mitigation and anticipation. In a limited meeting held at Halim Perdanakusuma Airport Base on December 23, 2024, he reminded all the urgency of coordination between various elements and information dissemination to the public regarding weather development update.

Budget Efficiency
Based on President Prabowo’s directives to the Red and White Cabinet, it is clear that the Government must focus on economic development for the people’s welfare. A clean and efficient administration, free from corruption, leaks, and collusion, must be realized. Budget utilization must be oriented towards job creation, productivity improvement, energy and food self-sufficiency program, and technological breakthroughs.

Instruction of President of the Republic of Indonesia Number 1 of 2025 on Budget Efficiency in Implementing the State Budget and Regional Budget 2025 which was signed by President Prabowo on January 22, 2025, serves as a guideline for all government officials both at central and regional levels to boost efficiency at their respective ministries/institutions and regions, by focusing on enhancing performance in public services. The President ordered non-essential activities to be curbed significantly, such as ceremonial events and official trips.

“I will continue to monitor it. I will call for efficiency. I demand courage, to cut out non-essential things,” he said.

Encourage Investment and Strengthen Foreign Cooperation
In November 2024, President Prabowo Subianto paid the first state visit to six countries: China, the United States, Peru, Brazil, the United Kingdom, and the United Arab Emirates. The visits were aimed at attending the APEC Summit in Lima, Peru and G20 Summit in Rio de Janeiro, Brazil, as well as at fulfilling invitations from friendly countries. The first state visits of President Prabowo are of great significance in showcasing Indonesia’s potential as a strategic partner in a global stage. Efforts to strengthen partnership has become the main key point in a discussion between President Prabowo and several foreign leaders, including in meetings held on the sidelines of APEC Summit and G20 Summit. From these visits, the President returned home with an investment commitment worth US$18.5 billion.

In December 2024, President Prabowo attended D8 Summit in Cairo, Egypt.  D-8 Organization for Economic Cooperation is an organization for economic cooperation among the following countries: Bangladesh, Indonesia, Iran, Malaysia, Egypt, Nigeria, Pakistan and Türkiye. Indonesia will chair the organization for the 2026-2027 period.

Within his first 100 days in office, President Prabowo has been awarded with a number of honors from various friendly countries. In an official ceremony in Lima on November 14, 2024, President Dina Boluarte of Peru, conferred the Peru’s highest honor “Grand Cross of the Order of the Sun of Peru” on President Prabowo. This award symbolizes strong friendship and mutual respect between Indonesia and Peru. President Prabowo also received the Darjah Kerabat Johor Yang Amat Dihormati Pangkat Pertama (D.K I Johor) or The Most Esteemed Royal Family Order of Johor (First Class) by Yang di-Pertuan Agong XVII Sultan Ibrahim during his visit to Malaysia on January 27, 2025. The Darjah Kerabat Johor is one of the highest honors of the Johor Sultanate, traditionally granted to Malay rulers, close royal relatives, and foreign leaders who have significantly contributed to strengthening bilateral relations. An award was also conferred by Indian Government on President Prabowo who became the Chief Guest on the celebration of the 76^th Republic Day of India, on January 26, 2025, in New Delhi. For the commemoration ceremony, Indonesia sent 352 Indonesian National Defense Forces personnel from the defile and drum band members. The Indonesian contingent will enter third after the opening troops and veterans from the host country.

One hundred days have passed for the Red and White Cabinet. This momentum marks the cornerstone of significant changes to achieve the vision of the Advanced Indonesia 2045.

Various improvements, innovations, and breakthroughs will continue to be made to accomplish the mission of Asta Cita, while also realizing a just, prosperous, and flourishing Indonesia. Staying optimistic as we move forward for a better Indonesia.

“There are still rooms for improvement here and there, but that is okay. Nevertheless, I do feel all ministers and deputy ministers have a strong desire to deliver results to the people. That’s what I feel. And, I want to thank all of you. This is what our people expect; we are on the right trajectory,”

— President Prabowo Subianto,

Plenary Cabinet Meeting, January 23, 2025 ––

(FI/RAS/MUR)