SBY Warns World is Not Doing Well, Indonesia Must Take This Approach

Jakarta, CNBC Indonesia — The 6th President of Indonesia, Susilo Bambang Yudhoyono (SBY), has warned that the world is not in a normal condition. SBY stated that we are living amidst a series of overlapping crises. This begins with climate change, which is behaving unpredictably and causing natural disasters that most impact poor and vulnerable communities.

At the same time, SBY noted that the global economy is facing fragmentation. According to him, trade is being influenced by geopolitics, technological competition, and pressures within the financial sector. “Trade is no longer driven solely by efficiency, but also by geopolitics. Technology has become a source of productivity, but also a field of competition. We are also seeing increasing pressure on public finance,” SBY said during his speech at The 4th Perbanas International Conference on Economics, Business, Management, Accounting and IT (PROFICIENT 2026) at the Perbanas Institute, Jakarta, on Tuesday (2/6/2026).

SBY noted that many developing nations are spending more on essential services, while the financing requirements for health, education, infrastructure, energy transition, and climate adaptation continue to rise. In this situation, SBY stated that developing nations like Indonesia must respond with wisdom.

“We cannot simply mimic the path taken by developed nations. We must design our own development strategy,” said SBY. “Open to the world, but rooted in our national interests. Market-oriented, certainly, but socially responsible. Driven by growth, but environmentally sustainable. And digitally advanced, but human-centric.” He remarked that this is the essence of sustainable development for Indonesia.

SBY continued by noting that during his administration (2004-2014), Indonesia faced several “great tests.” However, Indonesia was able to navigate them through strategies including fiscal prudence and good governance. “When the global financial crisis hit in 2008, Indonesia was not immune. But we survived because we maintained trust, fiscal prudence, domestic demand, and good policy coordination. We learned that credibility is vital. In times of uncertainty, markets do not just listen to numbers, but to the quality of governance,” SBY explained.