On August 15, 2025, Indonesia’s parliamentary complex in Jakarta was abuzz with anticipation. Over 600 members of parliament, Vice President Gibran Rakabuming Raka, cabinet ministers, deputy ministers, former presidents and vice presidents, political and public figures, and foreign diplomats gathered for the Annual Session of the People’s Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and the Regional Representatives Council (DPD). But this year’s session carried a special weight: President Prabowo Subianto was set to deliver his first State Address and unveil the 2026 State Budget, marking a pivotal moment for the country’s economic direction.
Speaking with characteristic candor, President Prabowo laid out a vision for an “Indonesia Incorporated,” a concept he presented as a call to unity across all sectors of society. “Not all business elites are followers of ‘greedy-nomics.’ In fact, we invite the majority of them to help build Indonesia together. I told them they must be part of Indonesia Incorporated,” Prabowo declared, as reported by ANTARA. He emphasized that every sector—from large corporations to small enterprises and even the nation’s poorest citizens—has a role to play in Indonesia’s growth story.
“The strong and the big have a role, just as the medium and small do. We will empower the poor. That is Indonesia Incorporated,” he explained. Prabowo’s vision is rooted in the idea that empowering the poor and boosting their purchasing power will, in turn, stimulate demand for products from large companies, creating a virtuous cycle that benefits all. “Boosting the purchasing power of the poor will drive demand for products from large companies, creating a mutually reinforcing economic cycle,” he said. He also took a moment to thank “every nationalist entrepreneur who has created jobs in Indonesia, invested in Indonesia, and kept their business profits in Indonesia.”
Prabowo’s address was more than just rhetoric; it was a roadmap for an ambitious, resilient, and inclusive Indonesia. Presenting the 2026 State Budget (APBN), he outlined a framework focused on strengthening resilience in food security, energy, the economy, and defense. “The architecture of the 2026 State Budget reflects the vision and mission that I share with the Vice President, directed at realizing a resilient, self-reliant, and prosperous Indonesia. Resilience is the foundation for independence and the people’s welfare. We will strengthen our resilience in food, energy, the economy, and defense,” Prabowo stated, according to Indonesia Observer.
Central to this vision is the effective management of Indonesia’s abundant natural resources for the benefit of its people. Prabowo stressed the importance of expanding downstream industries, creating jobs, and maximizing value added within the country. He insisted that equitable development should stretch from Sabang to Merauke, ensuring that every Indonesian—regardless of geography—has equal access to education and health services.
Despite global turbulence—ranging from shifting governance structures and geopolitical tensions to physical conflicts and trade disputes—Prabowo highlighted Indonesia’s economic stability. “In the second quarter of 2025, the economy grew by 5.12 percent year-on-year, an improvement from 4.87 percent in the first quarter. Our exports rose strongly by 10.67 percent, with value added from downstream industries contributing the largest share of export strength,” he explained. Unemployment has dropped to 4.76 percent, and poverty has reached its lowest rate in history at 8.47 percent. Inflation, meanwhile, has been kept at a manageable 2.4 percent, helping to protect household purchasing power. “This is tangible proof that through hard work and determination, we can improve the lives of millions of Indonesians,” Prabowo affirmed.
Among the government’s flagship programs are Free Nutritious Meals (MBG), now reaching 20 million beneficiaries, and Free Health Checks (CKG), which have benefited more than 17 million people. The establishment of 80,000 Merah Putih cooperatives at both village and urban ward levels is also underway, aiming to stimulate local economies and empower communities.
In addition to domestic initiatives, Prabowo pointed to significant strides in economic diplomacy. Indonesia has successfully negotiated a reduction in bilateral tariffs with the United States—from 32 percent down to 19 percent—and concluded the Indonesia–EU Comprehensive Economic Partnership Agreement (CEPA) after a decade of negotiations. “We want to uphold our national interests on the global stage, standing tall and equal with every other nation,” he declared.
Yet, the President’s message of resilience and self-reliance wasn’t limited to government policy or big business. On August 14, 2025, Deputy Minister of Finance Thomas Djiwandono addressed the Leading Indonesian Financial Literacy (Like It) event, underscoring the importance of saving habits for Indonesia’s long-term economic growth. “Try to imagine if you keep saving, one day you can help parents, can you help parents, what can you do? Yes, maybe build a house for ladies and gentlemen in the future,” he told attendees, as covered by DigitalSiber.id. He explained that the act of saving doesn’t just benefit individuals or families; it also drives the broader economy by supporting sectors like construction, which in turn employs contractors, carpenters, and building material producers.
Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar added another layer to this narrative of inclusion. At the same event, he revealed that student savings—held by school-age children—had reached more than Rp32 trillion as of August 14, 2025. “If I may say, maybe the younger siblings are not aware that actually student savings are savings, namely savings given to school-age children, at this time it seems that they cannot be trusted, have reached a value of more than Rp32 trillion,” Mahendra said. Nearly 59 million Indonesian children now own savings accounts, a figure that underscores the reach and potential of grassroots financial inclusion.
According to Mahendra, these savings are not idle; they are put to work in the national interest. The funds support national development sectors, drive economic growth, create jobs, and help finance micro, small, and medium enterprises (MSMEs). “So what the younger siblings contributed in the form of savings, then in turn gave added value and a big contribution to this nation,” he concluded.
All of these efforts—whether at the highest levels of government or among Indonesia’s youngest citizens—point toward a singular goal: building an economy that is not only resilient and self-reliant, but also inclusive and equitable. As President Prabowo’s administration forges ahead with its vision for Indonesia Incorporated, the message is clear: the nation’s future depends on the participation of all, from powerful business elites down to schoolchildren diligently saving their first rupiahs. The coming years will reveal just how far this spirit of unity and shared purpose can take the world’s fourth most populous country.
