In delivering the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) at the 19th Plenary Session of the House of Representatives for Session Period V, Session Year 2025-2026, here on Wednesday, the president highlighted that over the past seven years, Indonesia's growth has reached around 35 percent.
However, the percentage of the poor and vulnerable population rose by 3.4 percent in 2017-2024, and the middle class fell by 4.7 percent in the same period.
"The answer has to be scientific and mathematical, and I think the answer is most likely, not possible, but I believe the economic system we are running is on the wrong trajectory," he said.
"Perhaps our differences with countries like Mexico, India, the Philippines, and so on are systemic differences," Prabowo said.
His statement refers to Indonesia's share of state revenue for gross domestic product (GDP), which is only 11 percent in 2024. Meanwhile, Mexico reaches 25 percent, the Philippines 21 percent, India 20 percent, and Cambodia 15 percent.
If the current economic direction is continued in the next few years, it will be a challenge in improving welfare, since welfare is closely related to the sovereignty of the nation, preventing the nation from having the strength to face the existing dynamics.
The president also highlighted the existence of fraudulent practices in which certain businessmen do not factually report profits or sales, and even set up companies abroad to obtain prices far below normal.
Despite being a major producer of a number of commodities, the president said that export selling prices are largely determined by other parties.
He gave an example of how palm oil prices are determined by other countries.
In particular, he highlighted Article 33 of the 1945 Constitution (UUD), in which the economy is structured as a joint effort based on the principle of family.
"All people must enjoy our economy based on the principles of togetherness, efficiency, justice, sustainability, environmental awareness, and independence," the president said.
"Independent and maintaining balance, progress, and national economic unity," he added.
He reminded that this had been explained very well by the nation's founders in the 1945 Constitution.
"This is our economic blueprint. If we deviate from this blueprint, we have no one to blame but ourselves for refusing to accept the trust entrusted to us by our nation's founders," Prabowo Subianto said.
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Translator: Prisca Triferna Violleta, Katriana
Editor: Azis Kurmala
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