Habibie Democracy Dialogue

Details

Widening geopolitical conflicts, supply chain disruptions, and trade wars among major powers have disrupted global economic stability. This uncertainty and the shifting economic order have triggered economic instability, including in Indonesia. According to LPEM FEB UI (May 2025), although the annual inflation rate has declined, Indonesia's economy still shows signs of structural vulnerability and weak consumer purchasing power. The country also faces mass layoffs, rising unemployment, and pressure on industries.

Amid this uncertainty, the Indonesian government has implemented a budget efficiency strategy. Through Presidential Instruction No. 1 of 2025 on Spending Efficiency in the Implementation of the 2025 State and Regional Budgets (APBN and APBD), the President has instructed ministries, agencies, and regional governments to optimize state spending, targeting savings of up to IDR 306.69 trillion, sourced from ministries/agencies and regional transfers. This efficiency effort has been underway through the first semester of the 2025 fiscal year. At the regional level, this also coincided with the 100-day transition period of newly appointed regional leaders formulating development policies amidst APBD budget tightening.

The global crisis and adjustments in national fiscal policy present challenges for every country in fulfilling their social, political, and development functions across different levels of government. In challenging times, pressure on democratic governance tends to increase, as the public demands swift solutions amid economic uncertainty, presenting a challenge for governments. Often, short-term efficiency and stability strategies are prioritized, resulting in reduced space for deliberation and public participation. Therefore, it is important to recognize that the threats to democracy stem not only from political pressures but also from economic stress.

A resilient democracy must be supported by active citizen participation, transparency, and accountability mechanisms—key foundations for weathering crises sustainably. Democracy must not only endure but also adapt and become more inclusive to ensure socio-political resilience. Hence, rational policy strategies are required to sustainably address global and national challenges.

In this context, The Habibie Center, supported by Konrad-Adenauer-Stiftung (KAS) Indonesia and the Ministry of Home Affairs of the Republic of Indonesia, is once again organizing the fifth edition of the 2025 Democracy Dialogue series. This event aims to discuss the future direction of democracy in the face of global crises and the era of budget efficiency. With the theme "Democratic Resilience Amid National and Global Economic Instability," the dialogue seeks to foster multi-stakeholder discussions to promote effective policymaking.

Democracy Dialogue Panelists:

1. Ima Mahdiah (Head of the Pramono-Rano Transition Team; Member of the Jakarta Regional House of Representatives (DPRD DKI Jakarta), Indonesian Democratic Party of Struggle (PDI-P) Faction_

2. Tari Lestari, S.Si, SE, MS (Director of Fiscal, Monetary, and Financial Sector Planning, Ministry of National Development Planning)

3. Prof. Didik J. Rachbini, M.Sc., Ph.D. (Chairperson of the Institute for Democracy, Economics, and Ecology at The Habibie Center; and Rector of Paramadina University)

Moderator: Pitut Pramuji, M.A. (Associate Fellow The Habibie Center)

📍 Venue: The Habibie Center Building – South Jakarta