President Details Multidimensional Problems, Mitigation Needed to Prevent Escalation

President Prabowo Subianto has reminded all parties that Indonesia is currently facing multidimensional problems. Indeed, the President’s warning aligns with the aspirations of various elements of society voiced almost daily through social media platforms. To prevent an escalation of issues, the President’s warning should be promptly followed up by his aides, beginning with mitigation of these multidimensional problems. During a Plenary Cabinet Session on Monday (20/7), President Prabowo Subianto revealed that many problems still occur in Indonesia. The President did not expect the variety of issues to be beyond anticipation. The problems detailed by the President include insufficient teacher salaries, a lack of jobs, and a large number of people living in poverty. “We understand that our teachers’ salaries are lacking; we understand our job opportunities are lacking; we understand there is still much extreme poverty. We understand these are our problems. This is precisely why we were elected, given the mandate to solve them,” Prabowo said, as monitored online via the Presidential Secretariat’s YouTube channel. The head of state is determined that his administration will resolve all these issues. Complementing the problems detailed by the President, it is also worth adding other issues that cannot be simplified. These range from weakening national economic performance, the bankruptcy of the private sector including MSMEs, weakening public purchasing power or consumption, increasingly rampant corruption, collusion and nepotism (KKN), to societal polarisation due to political residue. Not to mention the state’s obligation to continue rehabilitation and reconstruction in several disaster-affected areas in Sumatra. This series of problems is a fact that must not be covered up, so that the understanding of multidimensional issues becomes more comprehensive. A thorough understanding of these multidimensional problems will create space for the formulation of solution-oriented policies without generating new problems. Recently, policies have often been introduced or implemented that reflect government ego, particularly tax policies. The aggressive expansion of tax objects has resulted in the narrowing of growth space for the productive activities of ordinary people. Labour communities and trade unions recently voiced protests over the imposition of Income Tax (PPh) 21 on the disbursement of Old Age Security (JHT) funds. In several regions, local residents have continuously voiced their rejection of local governments’ aggressiveness in expanding tax objects, which has even targeted small stalls and street vendors. If the socio-economic reality of society were in good condition, the expansion of tax objects might be acceptable. Conversely, if the people’s economy is clearly in trouble due to weakening purchasing power caused by a surge in unemployment, expanding tax objects will only further restrict the space for movement and growth of the majority’s productive activities. It must be collectively acknowledged that amidst the pressures of these multidimensional problems, the public has not given up. Instead, with their own spirit of independence and tenacity, people are struggling to free themselves from these pressures. In several regions, residents have taken the initiative to independently repair damaged infrastructure that hinders their access to productive activities. There are several examples of such community self-reliance. Residents of Bener Meriah Regency, Aceh, worked together to raise more than IDR 1 billion to repair the Enang-Enang bridge in Pintu Rime Gayo District. In Central Java, residents in Sukoharjo, Grobogan, Blora, and Pati independently raised funds to repair damaged roads. In this context, instead of helping or facilitating these productive activities, the government is making people uncomfortable with the expansion of tax objects. Amid the current poor socio-economic reality, the expansion of tax objects in several regions will sooner or later create tension between local governments and residents. The expansion of tax objects is a case example of a policy to address a budget deficit that creates negative externalities or burdens for the community. The State Budget (APBN) for the first semester of 2026 recorded a deficit of IDR 196.5 trillion. Besides tax contributions from the public to address this deficit, the government still has several options. The President has hinted at distortions or irregularities in the Indonesian economy. These distortions involve the leakage of state wealth worth thousands of trillions or hundreds of billions of dollars annually through various illegal practices. “Through practices of under-invoicing, report falsification, transfer pricing, and smuggling, which are truly unfair to our nation,” Prabowo said. The Head of State also confirmed the government will stop these long-standing illegal practices. In the context of restoring a healthy state budget balance, the President’s aides are urged to turn his determination to secure state wealth into concrete action. The first step is mitigating the leakage of state wealth. Relevant and authorised state institutions should immediately take the initiative to carry out this mitigation. Senior figures and leaders of the SOKSI National Leadership Council (Depinas) have paid special attention to President Prabowo’s remarks regarding the multidimensional problems currently facing Indonesia. This theme became the material for discussion at a recent SOKSI senior gathering forum in Jakarta, themed ‘Mitigating the Economic Crisis - Preventing Potential Political Instability’. Refreshing memories, the SOKSI figures pointed to history.