President Prabowo Subianto highlighted Indonesia’s recent diplomatic and economic milestones during his first State of the Nation Address at the 2025 People’s Consultative Assembly (MPR) Annual Session on Friday (Aug 15, 2025). Speaking after 299 days in office, Prabowo outlined the country’s growing role in global trade and its resilient economy despite geopolitical challenges.
One of the most significant announcements was Indonesia’s decision to join the BRICS economic bloc—comprising Brazil, Russia, India, China, and South Africa—following strengthened relations with all member countries.
“We have decided that Indonesia will join BRICS. Indonesia has also been invited to various global events, including India’s independence celebrations,” Prabowo stated, as quoted by CNBC Indonesia.
Prabowo also confirmed that Indonesia had completed negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with the European Union, granting the country zero-percent tariffs for market access in Europe. He credited Indonesia’s diplomatic ties with EU countries, including France, for the breakthrough.
On trade relations with the United States, Prabowo noted progress in lowering tariffs imposed during President Donald Trump’s administration. While Indonesia had previously faced a 32% tariff, negotiations reduced the rate to 19%, lower than what many countries, including China and India, currently face.
“We completed the Indonesia–EU CEPA, which is essentially a free trade agreement allowing us to access the European market with a 0% tariff. We also negotiated tariffs with the U.S,” he added.
Strong Economic Growth Despite Global Headwinds
Prabowo stressed that Indonesia’s economy remains robust, expanding 5.12% in the second quarter of 2025 despite global trade wars and tariff disputes.
“In these 299 days, we have achieved meaningful progress. In the midst of political and economic conflicts, including trade wars, Indonesia’s economy still grew above 5%, at 5.12%,” he said, as reported by CNN Indonesia.
Investment growth also played a key role, with first-half 2025 investment realization reaching USD 60.77 billion —up 13.6% from last year—meeting the state budget target. This surge in investment has created 1.2 million new jobs, according to Prabowo.
He also praised the Free Nutritious Meal (MBG) program led by the National Nutrition Agency, which has been operational for seven months. Drawing comparisons, Prabowo noted that Brazil took over a decade to provide free meals to 40 million people.
“We must acknowledge that our country has great capacity. When there is the will, much can be achieved together,” he said.
Parliamentary Attendance and Formal Opening
The MPR Annual Session, which also served as a joint session of the House of Representatives (DPR) and the Regional Representative Council (DPD), officially opened despite the absence of 128 members.
“According to the attendance list from the MPR Secretariat General, 604 out of 732 members were present,” said MPR Chair Ahmad Muzani, as quoted by Liputan6.
He confirmed the session met the legal quorum and declared it open with a single gavel strike. This was Prabowo’s first state address as president, marking the 80th anniversary of Indonesia’s independence.
With BRICS membership, the EU free trade agreement, and ongoing U.S. tariff negotiations, Prabowo’s administration is positioning Indonesia as an increasingly influential player in the global economy while sustaining domestic growth and job creation.
Source: CNBC Indonesia, CNN Indonesia, Liputan6
Photo Credit: (Ajeng Dinar Ulfiana/POOL/AFP)
