Delivering a State of the Nation Address, President Prabowo expressed optimism that Indonesia could face global challenges
JAKARTA — President Prabowo Subianto expressed his appreciation for the positive achievements of the national economy despite global uncertainty. In his speech delivering the 2026 State Budget Bill and Financial Note at the Indonesian House of Representatives on Friday (August 15, 2025), he emphasized that the hard work of all elements of the nation has yielded encouraging results.
“These first ten months, we have all worked hard, united, to realize the nation’s ideals amidst a highly dynamic global environment,” said the President. He highlighted rising geopolitical tensions, tariff wars, and the threat of physical war that are putting pressure on the global economy.
The President explained that in the second quarter of 2025, the Indonesian economy grew 5.12 percent annually, up from 4.87 percent in the previous quarter. More than half of this growth came from public consumption, which rose 4.97 percent. Exports also grew 10.67 percent, driven by added value from downstream processing.
“A strong economy supports improved public welfare,” Prabowo said. The unemployment rate will fall to 4.76 percent by February 2025, with 3.6 million new jobs created. Meanwhile, the poverty rate will drop to 8.47 percent, a historic low.
The government, he continued, has successfully maintained inflation at 2.4 percent to protect public purchasing power, particularly among the low-income groups. Investor optimism is also reflected in investment realization in the first half of 2025, which exceeded the State Budget target, as well as positive stock market performance.
The Head of State outlined various flagship programs that are beginning to be felt by the community, including Free Nutritious Meals, Free Health Checks, school revitalization, People’s Schools, and the establishment of the Merah Putih Village/Sub-district Cooperative. He stated that these programs not only produce superior human resources but also foster a productive business ecosystem at the village level.
“Amid global turmoil, the state budget (APBN) has maintained economic stability, protecting the people and businesses,” he said.
The government has also distributed economic stimulus worth IDR 33 trillion in January 2025 and IDR 24.4 trillion in June 2025, and strengthened the social safety net through the Family Hope Program (PKH), the Staple Food Card (Kartu Sembako), the Smart Indonesia Program, and the KIP Kuliah (Kuliah) program.
The President emphasized that this success is concrete evidence that hard work and sincerity can fight for the fate of millions of people towards a more prosperous life.*
