Bamsoet Calls for Economic Mitigation to Prevent Social and Political Instability

Bambang Soesatyo (Bamsoet) has called on the government to make economic policy a key instrument in maintaining national stability, warning that unmanaged economic pressures historically lead to social unrest and political instability. He made the statement in Jakarta on Thursday, 23 July 2026, during a national gathering of the Central Organisation of Indonesian Self-Reliant Employees (SOKSI).

Bamsoet, who serves as the Chairman of the People’s Consultative Assembly (MPR) and Deputy Chairman of the Golkar Party’s Advisory Council, noted that the global economy is currently facing a slowdown, geopolitical fragmentation, and supply chain disruptions. He stressed that while Indonesia’s economic fundamentals remain relatively sound with growth around five per cent and controlled inflation, early mitigation is crucial.

‘Mitigation of an economic crisis must not wait for the situation to deteriorate. The experience of various countries proves that when economic pressures are left to fester, what emerges is not merely a slowdown but social discontent, political polarisation, rising criminality, and a weakening of public trust in state institutions,’ Bamsoet said.

He pointed to historical precedents, including the 1997-1998 Asian Financial Crisis, which triggered massive political change in Indonesia, and the more recent collapse in Sri Lanka, where a foreign exchange crisis led to food and fuel shortages and ultimately the fall of the government. Bamsoet argued that economic inequality is always a gateway to social conflict, and therefore, building an economy that provides a sense of security through jobs, decent incomes, and stable prices is essential for political stability.

Bamsoet outlined a comprehensive mitigation strategy that includes strengthening food and energy security, accelerating downstream industrialisation, improving human resources, transitioning to a knowledge-based economy, empowering MSMEs, and expanding digitalisation and access to productive financing. He emphasised that development must produce equitable welfare, reaching villages, border areas, small businesses, farmers, fishers, and the youth to provide a solid foundation for political stability.

He also warned that in the digital era, economic hardship is often exploited through disinformation and public opinion manipulation on social media, which can deepen polarisation and erode trust in government. Therefore, he added, strengthening digital literacy, ensuring policy transparency, and maintaining open public communication are vital components of the national mitigation strategy.