Backing the Direction of Fiscal Policy for the People’s Welfare

KMHDI welcomed the presentation of the Macro-Economic Framework and the Core Principles of Fiscal Policy (KEM-PPKF) for 2027 by President Prabowo Subianto, saying the fiscal policy direction demonstrates a strong commitment to stabilising the national economy while realising national self-sufficiency.

Wayan Ardi Adnyana, chairman of KMHDI’s central leadership, stated that the policies prioritise the state budget (APBN) as a strategic instrument to protect citizens and promote social welfare, in line with Article 33 of the 1945 Constitution.

‘In the face of global geopolitical pressures, trade wars and economic uncertainty, Indonesia remains able to maintain its fundamentals well. This is reflected in inflation controlled at 2.42%, a trade surplus for 71 consecutive months, and foreign exchange reserves of USD 146.2 billion,’ Ardi told reporters on Friday (22 May 2026).

KMHDI also highlighted Indonesia’s economic growth reaching 5.61% in Q1 2026, a figure higher than the average of several G20 members.

According to Ardi, this growth performance demonstrates that domestic economic stability has a solid foundation to pursue the next growth target, projected to be around 5.8% to 6.5% in 2027.

Additionally, the student organization expressed support for the government’s focus on eight national priority clusters: health, education, downstreaming and industrialisation, energy and water independence, food sovereignty, poverty reduction, people’s economy and rural areas, and infrastructure and housing development.

‘We see the government beginning to place human development, farmers’ welfare, strengthening MSMEs, and the creation of formal employment as the main priorities of national development. This is the right direction to prepare the younger generation to face the country’s future,’ Ardi added.

Furthermore, KMHDI commended the government’s commitment to safeguarding health and the sustainability of the APBN through optimising state revenue, efficient productive spending, and prudent financing management.

As a cadre organisation, KMHDI emphasised the importance of public involvement to continuously oversee the course of national development so that the principle of social justice can be felt by all segments of society, especially small-scale economic players.

‘The President’s speech is not only about economic growth figures but also about hope for farmers, fishers, teachers, MSMEs, and Indonesia’s youth. Therefore, all elements of the nation must work together to guard the national development agenda to realise a sovereign, just, and prosperous Indonesia,’ Ardi concluded.