Indonesian Economists Alliance Issues Seven Emergency Demands for Economic Reform
Key Takeaways
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JAKARTA, Investortrust.id — The Indonesian Economists Alliance issues Seven Emergency Demands for Economic Reform on Tuesday, Sept. 9, 2025, citing worsening social inequality and institutional weakness that undermine the country’s founding vision of social justice.
Spokesperson Elan Satriawan said the alliance, made up of professionals analyzing society through theory, logic, and data, has observed a systemic decline in living standards across communities.
“Although global shocks added pressure, the situation in Indonesia did not happen overnight. It was the result of years of governance that lacked accountability, which in turn caused social injustice,” said Elan during the press conference announcing the declaration in Jakarta.
The group identified two root causes of today’s economic challenges: large-scale misallocation of resources and fragile state institutions weakened by conflicts of interest and poor governance.
“Given these problems and the unhealthy political rivalry in state affairs, we stress the urgent need for real improvements to the welfare of the people,” Elan said.
The alliance framed its Seven Emergency Demands as a call to policymakers to restore trust, ensure fairness, and realign governance with Indonesia’s values of independence, lasting peace, and social justice.
The Seven Emergency Demands
First, the alliance urged the government to fix widespread misallocation of spending and direct funds more fairly and proportionally to policies and programs.
Second, it demanded the restoration of independence and transparency in key state institutions such as Bank Indonesia, the Central Statistics Agency (BPS), the House of Representatives (DPR), the Supreme Court (MA), the Constitutional Court (MK), the Corruption Eradication Commission (KPK), the Audit Board of Indonesia (BPK), and the Attorney General’s Office. These institutions, they said, must return to their true functions without undue political or private interference.
Third, the alliance called for an end to excessive state dominance in the economy. They warned that the growing role of Danantara, state-owned enterprises, the military, and the police could distort competition, weaken local businesses, and erode opportunities for micro, small, and medium enterprises (MSMEs).
Fourth, the group demanded deregulation and simplification of policies, licensing, and bureaucracy to create a healthier investment climate.
Fifth, it urged the government to focus on reducing inequality across social and economic dimensions.
Sixth, the alliance stressed the need to bring back evidence-based and technocratic policymaking, while rejecting populist programs that undermine fiscal stability and prudence. They cited examples such as free meal programs, the Red-and-White Village Cooperative initiative, “people’s schools,” downstreaming policies, energy subsidies and compensation, and the expanded role of Danantara.
Finally, the seventh demand emphasized strengthening institutions, rebuilding public trust, improving governance, and safeguarding democracy. The alliance called for an end to conflicts of interest and rent-seeking behavior within state administration.