Prabowo Calls for Balance Between Corporate Influence and State Control

Economic Development Principles Reaffirmed

President Prabowo Subianto has reaffirmed that Indonesia's economic development must adhere to the principles outlined in Article 33 of the 1945 Constitution. This constitutional mandate emphasizes that the economy should be organized as a collective enterprise based on family principles. The President made these remarks during a plenary cabinet meeting held at the Presidential Palace in Jakarta.

Corporate Role in Economic Growth

While acknowledging that Indonesia requires robust corporate participation to stimulate economic activity, Prabowo was clear that corporate power must not supersede state authority. He stated, "We need corporations, we need private businesses, but they must not control the state or overpower it." This statement underscores the administration's commitment to maintaining a balance between promoting business growth and preserving state sovereignty.

Constitutional Economic Principles

The reference to Article 33 serves as a reminder of the constitutional framework that guides Indonesia's economic policies. This article mandates that economic activities be organized cooperatively and based on family principles, rather than allowing conglomerate practices that concentrate wealth. Prabowo's emphasis on this constitutional provision signals a policy direction that prioritizes equitable economic development and prevents excessive corporate influence over state affairs.

Implications for Business and Governance

Prabowo's statement has significant implications for both business operations and governance in Indonesia. While it recognizes the importance of the corporate sector in driving economic growth, it also sets a clear boundary regarding the limits of corporate influence. This approach is likely to shape the regulatory environment and corporate governance practices in the country, ensuring that economic development is pursued in a manner that serves broader national interests.