JAKARTA — In a departure from established state tradition, Indonesian President Prabowo Subianto appeared before Parliament on Wednesday, May 20, 2026, to personally present the government’s Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for the 2027 state budget.
During the plenary session at the MPR/DPR/DPD parliamentary complex, the retired army general and chair of the Gerindra Party used the occasion to deliver a pointed message regarding Indonesia’s colonial history and the importance of national dignity.
A Warning Against “Colonial Admiration”
President Prabowo urged Indonesians to resist being overly impressed by wealthy nations that achieved their prosperity through the exploitation of others. Referring to the legacy of imperialism, he noted that Indonesia’s founding generation experienced firsthand the humiliation and loss of dignity that came with colonial rule.
The President specifically highlighted the Netherlands, stating that the country recorded some of the world’s highest gross domestic product (GDP) per capita levels between the 16th and 19th centuries despite its small size. He argued that this prosperity was partially built on the extraction of natural wealth from the archipelago.
“We should not be too impressed by nations that became rich by taking the wealth of other nations,” Prabowo said, adding that Indonesians should not feel inferior to foreign powers. “We should not always admire what others teach us when they themselves do not practice what they preach.”
Leadership and the Lessons of History
Linking historical exploitation to current governance, the former defense minister warned that a lack of historical awareness could lead to repeated failures, stating, “A nation that does not learn from history will be punished by history.”
Prabowo emphasized that strong and united leadership is essential to safeguarding Indonesia’s national interests and resources. He cautioned that if leadership is “weak and divided,” the country’s wealth could once again be seized by outside powers, noting that such events have happened in the past.
Breaking Fiscal Tradition
Beyond the rhetoric, the President’s appearance marked a significant shift in the Indonesian fiscal policymaking process. Traditionally, the KEM-PPKF is delivered to Parliament by the finance minister on behalf of the president.
Mukhamad Misbakhun, Chair of House Commission XI overseeing finance and banking, described the move as a “new tradition” and a “new precedent” in state administration. Misbakhun dismissed suggestions that the President’s direct involvement was a response to recent pressure on the rupiah, stating instead that the President intended for the economic framework to receive broader public attention.
The 2027 Budget Framework
The presentation serves as the initial stage for discussions regarding the 2027 state budget draft. The KEM-PPKF includes several critical macroeconomic assumptions and targets, including:
- Economic growth and inflation projections
- The rupiah exchange rate
- Oil and gas lifting targets
- Indicative budget allocations for agencies and ministries
- 10-year government bond yields
What May Happen Next
Following this presentation, Parliament is likely to enter the formal discussion phase for the 2027 state budget draft. Given the President’s emphasis on strong leadership and the protection of resources, future budget deliberations may reflect a heightened focus on national interest and resource security. This shift in protocol could mean that future fiscal frameworks may be presented directly by the presidency rather than the finance ministry.
