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This article was translated by AI. Read the original article on Kompas.com. See Original
First, the development paradigm. The previous era prioritized investment and physical infrastructure as the chief focus. Various flagship mega-projects were showcased as performance highlights.
President Prabowo's administration shifts emphasis to people, food, and sovereignty. Free Nutritious Meals, school renovations, people’s schools, Garuda Excellence Schools, food security, and strengthening the people's economy are not mere programs but a philosophical shift. From concrete to humanity. From "building the body to nurturing the soul."
Second, fiscal discipline and legacy projects. Presidential Instruction No. 1 of 2025 regarding state spending efficiency has curtailed room for mega-projects.
Budget allocations for the new capital (IKN) have plummeted sharply, from around IDR 44 trillion in 2024 to about IDR 15 trillion in 2025, as noted by economists.
IKN is not halted, but its positioning is no longer a priority. Strategic national projects are also being evaluated. They are no longer given blank checks.
Third, resource control. Presidential Regulation No. 5 of 2025 on Forest Area Regulation establishes a Task Force involving the Ministry of Defense, TNI, Police, and the Attorney General's Office.
Land in forest areas claimed without valid permits is being reclaimed by the state. The obligation to save export revenues from natural resources has also been tightened, from 30% for three months to 100% for a year.
The message is clear: natural wealth is not a commodity that can be freely controlled by anyone with substantial capital. This resonates with Article 33 of the 1945 Constitution.
Fourth, the governance of state assets. Assignments to state-owned enterprises are gradually being replaced by Danantara, a super holding aimed at managing state assets in a centralized and professional manner.
Where it will lead, we must oversee, but the architecture is clearly different.
Fifth, the state’s position on capital interests. In the political economics map, every policy correction will touch on existing interests.
Concessions are disrupted, rents are cut, permits are revoked, and business networks that thrived under investment-centric regimes are now being organized.
Those interests that are affected will not remain silent. They seek channels, whether through markets, opinions, or politics.
The alleged wiretapping of the Head of State, which is currently in the legal process, reminds us that the interests' movements do not always occur on the surface.
Underground movements can sometimes be larger than those visible. The President's efforts to dismantle transfer pricing and under-invoicing is a glaring indication that their existence has long been eroding the country’s wealth.
The changes in development agenda navigation do not entirely sever ongoing projects. Downstream processing and several old projects with clear benefits to the state continue.
However, the overall direction is clear. The state intends to return as a controller, not merely a facilitator. "Indonesia first!"
Here lies the problem. A government with a firm corrective direction cannot have a leadership partner that is symbolically perceived as a representative of the direction being corrected. Two suns in one sky will produce anomalies.
This is not about names. Names are the President’s prerogative. Choosing one from the two names presented by the President is a political domain of the MPR.