Bamsoet Calls for Economic Crisis Mitigation to Prevent Political Instability
House of Representatives member and Deputy of the Honorary Council of the National Leadership Council of SOKSI, Bambang Soesatyo (Bamsoet), has reminded that the history of various countries shows that poorly managed economic crises almost always lead to increased social tension and political instability. He stated that the global economic slowdown, geopolitical uncertainty, supply chain disruptions, and fluctuating energy and food prices must be anticipated by Indonesia by strengthening national resilience early on. “The mitigation of an economic crisis must not wait until the situation deteriorates. The experience of various countries proves that when economic pressure is left to fester, what emerges is not merely a slowdown in growth, but also social dissatisfaction, political polarisation, rising criminality, and the erosion of public trust in state institutions. Therefore, economic policy must be used as an important instrument in maintaining national stability,” Bamsoet said on Thursday (23/7/2026).
He noted that Indonesia still has a relatively good economic foundation with growth of around five per cent and controlled inflation. However, challenges such as weakening public purchasing power, rising numbers of layoffs in labour-intensive sectors, and pressure on the middle class require measured mitigation steps to prevent them from developing into broader political and security issues. Bamsoet explained that international institutions like the IMF, World Bank, and OECD continue to warn that the global economy is in a phase of high uncertainty, making it essential for every country to strengthen its domestic economic resilience.
Bamsoet assessed that Indonesia has great opportunities due to its demographic bonus, natural resource wealth, and strategic position in the global supply chain. However, these opportunities will only yield benefits if accompanied by effective governance, consistent downstream industrialisation, strengthened investment, and the creation of quality jobs. “We must build an economy that is capable of creating a sense of security for the people. When people have jobs, decent incomes, controlled staple food prices, and access to good public services, political stability will be maintained by itself. Conversely, economic inequality will always be a gateway to social conflict,” he said.
He cited the 1997-1998 Asian financial crisis, which triggered major political change in Indonesia, and the 2022 crisis in Sri Lanka, where a foreign exchange shortage led to food and fuel scarcity and massive demonstrations that toppled the government. Bamsoet stressed that Indonesia must not repeat such bitter experiences and must build an early warning system to read early economic symptoms, strengthen central and regional coordination, maintain food price stability, expand social protection, and ensure investment continues to flow.
Bamsoet added that mitigation strategies must be comprehensive, including strengthening food and energy security, accelerating downstream industrialisation, improving human resource quality, transforming towards a knowledge-based economy, strengthening MSMEs, and expanding access to productive financing. He also highlighted the challenges of the digital era, where economic hardship is often exploited through disinformation and public opinion manipulation to increase polarisation. “Political stability cannot be maintained solely through a security approach. What is far more important is building public trust. The government must be present with fair policies, honest communication, and a commitment to the people’s interests. When public trust is maintained, various provocations will be much easier to neutralise,” he concluded.