Prabowo calls for bureaucratic reforms to foster a favourable business climate
Jakarta (ANTARA) — President Prabowo Subianto has urged ministers in the Red and White Cabinet to reform governance of the bureaucracy to create a conducive business climate in the country, including expediting business licensing.
“The government must reform all our institutions, so there is a good business environment. Entrepreneurs must not be squeezed endlessly, nor harassed,” President Prabowo Subianto said while delivering the Macro Economic Framework and State Fiscal Policy Stance (KEM-PPKF) at the 19th Plenary Meeting of the DPR RI during the 2025-2026 Session Year, at the parliamentary complex in Senayan, Jakarta, on Wednesday.
Moreover, the president highlighted the government’s need to facilitate and accelerate the licensing process for doing business. He specifically cited neighbouring Malaysia, which can issue permits within just two weeks, compared with Indonesia, which takes two years.
Prabowo also mentioned the need to streamline bureaucracy, noting that there are too many layered steps that can hamper business activities in Indonesia. The bureaucracy is characterised by the time required to issue technical regulations up to the recommendations at the ministry/institution level.
“Let me remind you, all ministers, bring your bureaucracies under control,” Prabowo said.
He stressed the importance of cooperation between the business sector and the government to ensure a good business climate. The government has also supported companies by providing social protection guarantees to communities, which can relieve burdens on entrepreneurs.
The government is also receptive to proposals from the business world, given that the economy is currently facing global dynamics affecting business activities.
“If there are entrepreneurs facing difficulties, report to us. If they request tax tariff reductions, we will help temporarily; do not continually seek tax cuts,” the Head of State said.
Earlier, President Prabowo Subianto delivered in person to the DPR RI the macro framework and key fiscal policy under the KEM-PPKF for the 2027 RAPBN during the 19th Plenary Meeting of the DPR RI for the 2025-2026 Session Year. Prabowo also became the first Indonesian president to deliver the RAPBN preface, which includes the macro framework and key fiscal policy aspects before members of the DPR RI.
The meeting was attended by 451 members of the DPR RI, and a quorum was thus established by DPR Speaker Puan Maharani.
Today’s Plenary session discussed three main agenda items: the government’s delivery of the KEM-PPKF for the 2027 RAPBN by the government; the Legislating Body’s report on the evaluation of the second changes to the 2026 Priority Prolegnas bill, followed by a decision; and the opinions of party factions on the DPR Commission III initiative bill concerning changes to Law Number 2 of 2002 on the Indonesian National Police, followed by a decision to become a bill proposed by the DPR RI.