Prabowo Instructs That Mining Commodity Prices Be Determined by the State

President Prabowo Subianto, in remarks at the plenary session of the DPR, voiced his frustration that Indonesia’s nickel prices have for years been determined by other countries. ‘Why are our nickel prices determined by other countries? It cannot be,’ Prabowo said at the 19th DPR plenary session on Wednesday, 20 May. He instructed his Red-White Cabinet to formulate the pricing of nickel and a number of other commodities. ‘I instruct my cabinet to work out the pricing of nickel, the pricing of gold. The prices of all our mines. The prices of all commodities must be determined in our own country,’ he said. Prabowo said it would be better for Indonesian commodities not to be sold if other countries do not want to buy at the determined prices. ‘If they do not want to buy, that’s fine; let it stay underground for our grandchildren. Better that than selling cheaply,’ he added. Prabowo’s speech at the DPR plenary today outlines the Macro Economic Framework and Key Fiscal Policy Stances (KEMPPKF) for the 2027 Fiscal Year Budget (RAPBN 2027). In his address, the president targets economic growth of 5.8 to 6.5 per cent in 2027. Under the basic assumptions of the KEMPPKF RAPBN 2027, the government also targets inflation in the range of 1.5 to 3.5 per cent. In terms of the exchange rate, the rupiah is targeted to be in the range of Rp16,800 to Rp17,500 per US dollar. ‘Our fiscal and monetary strategy must be capable of keeping our exchange rate stable against world currencies,’ Prabowo said. Regarding the APBN, next year the government targets state revenue at around 11.82 to 12.40 per cent of GDP, government expenditure at 13.62 to 14.80 per cent of GDP, and a deficit kept in the range of 1.8 to 2.4 per cent of GDP. ‘We will continue to strive to reduce and narrow the deficit,’ Prabowo said. This marks the first time the president has presented the KEMPPKF RAPBN before the DPR. The new tradition comes amid volatility in the rupiah’s exchange rate against the dollar and a fall in the IHSG. (yoa/gil)