Kadin Backs Prabowo’s Vision, Joins Danantara in Driving Indonesia’s Economic Growth
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JAKARTA, Investortrust.id — The Indonesian Chamber of Commerce and Industry, or Kadin, has pledged full support for President Prabowo Subianto’s call to strengthen the role of sovereign wealth fund Danantara and private businesses in driving national growth. Kadin also endorsed the government’s eight priority programs for the 2026 state budget, viewing them as realistic foundations for food security, energy resilience, education, healthcare, and investment.
Kadin Chairman Anindya Novyan Bakrie said President Prabowo’s emphasis on implementing Article 33 of the 1945 Constitution represented a decisive step toward building a fairer economy for all Indonesians.
“President Prabowo’s two recent speeches provide clear direction for us as a nation, particularly for the business community,” Anindya said on Monday, Aug 18, 2025. He was responding to Prabowo’s address at the Annual Session of the People’s Consultative Assembly (MPR) and his remarks to Parliament on the draft 2026 State Budget and Financial Note.
Danantara’s Expanding Role
In his speeches, President Prabowo underscored that state spending should focus on basic needs and public services, while private sector and Danantara investment must drive productive growth. He noted that household consumption and government spending alone could not sustain Indonesia’s long-term growth.
The government has set a bold target of 8% economic growth, requiring a surge in productive investment to create jobs, expand production, boost exports through downstream industries, and sharpen global competitiveness.
Danantara — formally the State Investment Management Agency Daya Anagata Nusantara (BPI Danantara) — is designed to function as a sovereign wealth fund, managing state-owned assets, attracting foreign capital, and channeling investment into priority sectors such as mineral processing, energy, agriculture, infrastructure, and housing. By doing so, it allows state budgets to be concentrated on essential services such as infrastructure, education, healthcare, subsidies, and social assistance.
“Kadin is ready to be Danantara’s partner,” Anindya said, stressing that the chamber’s members operate across agriculture, energy, finance, trade, downstream industry, renewable power, artificial intelligence, and data centers. With representatives in every district and city, Kadin considers itself well-positioned to accelerate nationwide investment.
Investment as Growth Engine
Anindya drew parallels with China, where investment contributes more than 40% of GDP, compared with Indonesia’s 28–32%. In the second quarter of 2025, investment contributed 27.8% to GDP, household spending 54%, and government expenditure 6.9%.
“Together with Danantara, Kadin can significantly raise Indonesia’s investment contribution,” he said.
He added that successful investment also depended on licensing efficiency, regulatory clarity, and consistent law enforcement across regions. “We continue to hear many complaints from local Kadin branches,” Anindya noted.
Despite global uncertainty, Indonesia recorded Rp 942 trillion ($58 billion) in realized investment in the first half of 2025, a 13.6% increase from last year, creating 1.2 million jobs. “If investment slows, production slows, and job creation suffers,” Anindya warned.
Prabowo’s Economic Blueprint
When presenting the 2026 draft state budget, President Prabowo said Danantara would be optimized to raise high-value economic activity and yield commercial returns, involving domestic and global private partners.
He described the state budget as a catalyst, while Danantara and private businesses must serve as engines of growth to strengthen Indonesia’s position in global supply chains.
Kadin endorsed this approach, saying creative financing schemes would enable greater private participation and help Indonesia establish itself as a respected global economic power.
Anindya said the government’s 2026 macroeconomic assumptions were realistic: growth of 5.4%, inflation at 2.5%, bond yields at 6.9%, and an exchange rate of Rp 16,500 per US dollar. He also praised government goals to reduce open unemployment to 4.44–4.96%, cut poverty to 6.5–7.5%, lower the Gini ratio to 0.377–0.380, and raise the Human Capital Index to 0.57.
RAPBN 2026: Fiscal Prudence and Priorities
The 2026 state budget framework projects Rp 3,786.5 trillion ($233 billion) in spending, Rp 3,147.7 trillion ($194 billion) in revenue, and a Rp 638.8 trillion ($39 billion) deficit, equivalent to 2.48% of GDP — lower than in 2025. Tax revenue is targeted at Rp 2,692 trillion ($165 billion), up 12.8% year-on-year, while non-tax revenue is expected to fall 4.7% to Rp 455 trillion ($28 billion).
Anindya said the design reflected prudent fiscal management while encouraging growth, aligning with Prabowo’s pledge to gradually reduce public debt.
Kadin also backed the government’s eight priorities in 2026, including food security, energy independence, free nutritious meals for 82.9 million students, quality education with Rp 757.8 trillion allocated, healthcare services with Rp 244 trillion in funding, empowerment of 80,000 new village cooperatives, strengthening defense, and boosting global trade and investment.
Article 33 as Guiding Principle
Anindya emphasized that Kadin’s composition — spanning MSMEs, cooperatives, corporations, and state enterprises — reflects the principle of family-based economics enshrined in Article 33 of the Constitution.
He said Prabowo’s speech had revived awareness of the article, which mandates that economic policy be built on cooperation and social justice.
The president had condemned “Greednomics” — profiteering practices by businesses exporting wealth abroad at the expense of ordinary Indonesians — and warned that violators would face legal action and asset seizures.
“We understand the President’s concerns. Independence must benefit all Indonesians, not just a few,” Anindya said.
Indonesia Incorporated
Kadin leaders recently held a three-day retreat at the Military Academy in Magelang, hearing directly from Prabowo about his vision of “Indonesia Incorporated.” The president called for collaboration among businesses to eliminate extreme poverty, support smaller enterprises, and ensure no Indonesian is left behind.
Anindya said this approach was rooted in the spirit of gotong royong (mutual cooperation) and national solidarity, stressing that the government alone could not deliver on the vision of justice and prosperity without active participation from business leaders.
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