What Medium-Term Development Priorities Apply Under PERPRES 12/2025 RPJMN 2025-2029?

1.0 Executive Summary

Peraturan Presiden Nomor 12 Tahun 2025 tentang Rencana Pembangunan Jangka Menengah Nasional Tahun 2025-2029 (PERPRES 12/2025) establishes Indonesia's National Medium-Term Development Plan for President Prabowo Subianto's five-year term (2024-2029), translating the long-term vision of Indonesia Emas 2045 (UU 59/2024) into actionable priorities. This Presidential Regulation serves as the constitutional bridge between the 20-year RPJPN framework and annual government work plans (RKP), elaborating the vision, mission, and programs of the President-elect from the 2024 General Election into specific development targets, policy directions, and budget allocations.

Key provisions: (1) Implementation of RPJM Nasional I (2025-2029), the first of four 5-year periods toward Indonesia Emas 2045; (2) Staged achievement of the five core vision targets (high-income status, reduced poverty/inequality, enhanced global leadership, improved human resource competitiveness, climate neutrality pathway); (3) Eight transformative development missions broken into measurable 5-year milestones; (4) 17 development directions with sector-specific programs and budget frameworks; (5) Mandatory alignment of ministerial strategic plans (Renstra-K/L), regional medium-term plans (RPJM Daerah), and annual work plans (RKP, Renja-K/L) with RPJMN 2025-2029 priorities; and (6) Performance management systems linking budget allocation to development outcome achievement.

This regulation applies to all central government ministries and agencies, regional governments (provincial and kabupaten/kota), state-owned enterprises (BUMN), and non-governmental development actors. PERPRES 12/2025 forms the legal basis for the 2025-2029 national budgets (APBN), ensuring fiscal resources align with presidential priorities. It represents Indonesia's most comprehensive medium-term development framework, integrating economic growth targets, social welfare expansion, green development pathways, and institutional reforms into a cohesive national strategy.

2.0 Regulatory Matrix Analysis

Matrix 2.1: RPJMN 2025-2029 Framework and Legal Foundation

Constitutional Context: UU 25/2004 tentang Sistem Perencanaan Pembangunan Nasional establishes the RPJM as the central planning instrument in Indonesia's development system. PERPRES 12/2025 operationalizes this framework for 2025-2029, ensuring policy continuity despite political transitions while allowing presidents to infuse their unique priorities.

Issuance Timeline: Per UU 59/2024 Pasal 8(2), RPJM Nasional must be established "paling lambat 3 (tiga) bulan terhitung sejak tanggal pelantikan" (no later than 3 months from inauguration). President Prabowo's inauguration on October 20, 2024 triggered this deadline, requiring Perpres 12/2025 issuance by January 20, 2025. The regulation's promulgation in early 2025 demonstrates compliance.

Matrix 2.2: Eight Development Missions - 5-Year Targets (2025-2029)

Integration Mechanism: Each mission cascades into specific programs detailed in Lampiran I of Perpres 12/2025. Ministries translate these into Renstra-K/L with measurable KPIs, while regions adapt them to RPJM Daerah considering local contexts.

Matrix 2.3: Five Vision Emas Targets - RPJMN I Milestones

Performance Accountability: Annual RKP tracks these milestones, with mid-term evaluation in 2027 to assess trajectory and adjust strategies if needed. Ministries report quarterly on KPI progress to Bappenas for national dashboard updates.

Matrix 2.4: Sectoral Programs and Budget Allocation Framework

Budget Linkage: PERPRES 12/2025 provides the policy basis for annual APBN (2025-2029). Finance Ministry (Kemenkeu) uses RPJMN priorities to allocate budget ceilings to ministries, ensuring fiscal discipline while funding development goals.

Matrix 2.5: Alignment Requirements Across Planning Levels

Enforcement Mechanism: Bappenas conducts annual reviews of Renstra-K/L and RPJM Daerah alignment with RPJMN. Non-compliant plans are flagged for revision. The Finance Ministry uses alignment assessment to determine budget allocations, creating fiscal incentives for compliance.

3.0 Compliance Obligations and Stakeholder Responsibilities

3.1 Central Government Ministries and Agencies

Renstra-K/L Formulation: Each ministry and agency must prepare Renstra-K/L (2025-2029) within 6 months of PERPRES 12/2025 issuance, containing (1) strategic goals aligned with RPJMN missions; (2) outcome indicators (indikator kinerja utama/IKU) traceable to RPJMN's 45 main indicators; (3) programs and activities for 5-year implementation; (4) performance targets for each year (2025-2029); and (5) indicative budget requirements.

Annual Renja-K/L Preparation: Annually, each ministry/agency must formulate Renja-K/L by April-May for the following fiscal year, specifying (1) activities derived from Renstra-K/L; (2) budget allocations aligned with RKP priorities; (3) output and outcome targets; (4) procurement plans; and (5) inter-agency coordination requirements.

KPI Monitoring and Reporting: Ministries/agencies must (1) establish internal monitoring systems tracking IKU progress; (2) report quarterly to Bappenas on performance; (3) conduct mid-term evaluations (2027) assessing Renstra-K/L effectiveness; (4) prepare annual performance accountability reports (LAKIP); and (5) undergo external audits by BPK and performance evaluations by Kemenpan-RB.

Budget Execution Discipline: Compliance requires (1) spending in accordance with Renja-K/L and DIPA (budget execution documents); (2) achieving minimum output/outcome targets to avoid budget cuts; (3) demonstrating value-for-money in procurement; and (4) submitting financial and performance accountability reports.

3.2 Regional Governments (Provincial and Kabupaten/Kota)

RPJM Daerah Alignment Obligation: Regional governments must revise or formulate new RPJM Daerah (2025-2029 for provinces; 2024-2029 or 2025-2030 for kabupaten/kota depending on election cycles) to "wajib selaras dan berdasarkan" (must be aligned with and based on) RPJMN 2025-2029. This requires (1) adopting RPJMN missions relevant to regional contexts; (2) setting regional targets contributing to national milestones; (3) identifying regional programs supporting national priorities; and (4) integrating spatial planning (RTRW) with development priorities.

RKP Daerah Formulation: Annually, regional governments must prepare RKP Daerah aligned with national RKP and strategic national programs. For example, if the national RKP prioritizes stunting reduction, regional RKP Daerah must allocate budgets for local nutrition programs, coordinating with the National Nutrition Agency (BGN - Perpres 83/2024).

Musrenbang Participation: Regional governments must conduct Musyawarah Perencanaan Pembangunan (development planning consultation forums) at village, sub-district, and district levels, integrating community inputs with RPJMN alignment requirements. This ensures bottom-up planning complements top-down national priorities.

Accountability to Central Government: Regions must (1) submit RPJM Daerah and RKP Daerah to central government (Kemendagri, Bappenas) for review; (2) report annually on development performance; (3) undergo evaluation for Special Allocation Fund (DAK) eligibility; and (4) participate in regional competitiveness assessments.

Fiscal Incentives: Regions demonstrating strong RPJMN alignment and performance receive (1) higher DAK allocations; (2) priority for national strategic project locations; (3) capacity-building support from central ministries; and (4) recognition in national development forums.

3.3 State-Owned Enterprises (BUMN)

RJPP and RKAP Alignment: BUMN must align their Long-Term Corporate Plans (RJPP - Rencana Jangka Panjang Perusahaan) and Annual Work Plans (RKAP - Rencana Kerja dan Anggaran Perusahaan) with RPJMN priorities, particularly in strategic sectors like (1) energy (PLN renewable transition); (2) food security (BULOG rice procurement); (3) infrastructure (Hutama Karya toll roads); (4) telecommunications (Telkom digital infrastructure); and (5) finance (Bank Mandiri MSME lending).

Public Service Obligations (PSO): BUMN implementing PSO programs must ensure these contribute to RPJMN targets. For example, Pertamina's subsidized fuel distribution supports social protection goals, while PT KAI's affordable rail services advance regional connectivity (Misi 6).

Investment Prioritization: BUMN capital expenditure (CAPEX) should prioritize projects supporting RPJMN missions, such as (1) renewable energy plants; (2) digital infrastructure (data centers, fiber optics); (3) affordable housing; (4) logistics infrastructure; and (5) healthcare facilities (BUMN hospitals).

Performance Evaluation: Ministry of BUMN (Kementerian BUMN) evaluates BUMN performance partly based on contribution to national development indicators, incentivizing RPJMN alignment through (1) leadership tenure security; (2) capital injection access; (3) expansion approvals; and (4) public recognition.

3.4 Non-Governmental Development Actors

Private Sector Engagement: PERPRES 12/2025 encourages private sector participation through (1) Public-Private Partnerships (PPP/KPBU) for infrastructure projects; (2) Corporate Social Responsibility (CSR) programs aligned with RPJMN priorities (education, health, environment); (3) Investment in priority sectors (renewable energy, digital economy, tourism); and (4) Collaboration with ministries on skills development and innovation.

Civil Society Organizations: NGOs and community organizations are encouraged to (1) participate in Musrenbang processes, providing grassroots input; (2) implement programs complementing government efforts (e.g., environmental conservation, livelihood development); (3) conduct independent monitoring of RPJMN progress; and (4) advocate for accountability and transparency.

Academic and Research Institutions: Universities and think tanks contribute by (1) providing evidence-based policy analysis for RPJMN implementation; (2) conducting impact evaluations of government programs; (3) training human resources aligned with RPJMN skills priorities; and (4) innovating technologies supporting development missions (green tech, digital solutions).

International Partners: Development partners (multilateral banks, bilateral donors) align assistance with RPJMN priorities, focusing on (1) climate finance for energy transition; (2) capacity building for governance reforms; (3) concessional financing for infrastructure; and (4) knowledge sharing on best practices.

4.0 Technical Implementation Standards and Procedures

4.1 RKP Formulation and APBN Linkage

Annual RKP Cycle: Each year (2025-2029), the President issues RKP via Perpres by May-June for the following fiscal year. The RKP process involves (1) Bappenas drafting RKP based on RPJMN, considering economic forecasts and fiscal space; (2) Musrenbang Nasional (National Development Planning Consultation) integrating regional inputs; (3) Cabinet discussion approving RKP priorities and budget allocation framework; and (4) Presidential issuance of RKP Perpres.

APBN Preparation: Finance Ministry uses RKP as the pedoman (guideline) for APBN formulation, determining (1) revenue targets (tax, non-tax, grants); (2) expenditure ceilings by ministry/agency based on RKP priorities; (3) deficit/surplus levels maintaining fiscal sustainability (max 3% of GDP); and (4) financing sources (domestic/foreign borrowing, privatization).

DPR Budget Approval: Government submits RAPBN (Draft National Budget) to DPR by August. DPR reviews alignment with RKP and RPJMN, conducting hearings with ministries. APBN is approved by October-November, ensuring fiscal resources match development priorities.

Mid-Year Adjustment: If economic conditions change significantly (e.g., commodity price shocks, global recession), Government can propose APBN-P (Revised Budget) to DPR, realigning expenditures with updated RKP priorities while maintaining RPJMN strategic direction.

4.2 Performance Management and Monitoring Systems

45 Main Development Indicators: Bappenas tracks the 45 indicators from RPJPN (UU 59/2024 Pasal 4(3)) annually, assessing whether RPJMN I (2025-2029) is on trajectory to meet 2045 goals. Indicators cover economic (GDP growth, investment ratio), social (poverty, HDI), environmental (emission intensity, forest cover), and governance (corruption index, ease of doing business) domains.

National Development Dashboard: Bappenas operates an online dashboard displaying real-time progress on RPJMN indicators, ministerial KPIs, and regional performance. This transparency tool enables public monitoring and evidence-based policy adjustments.

Quarterly Performance Reviews: Cabinet-level meetings chaired by the President review quarterly reports from Bappenas on RPJMN progress. Underperforming ministries are required to present corrective action plans, with serious failures triggering leadership accountability.

Mid-Term Evaluation (2027): A comprehensive evaluation in 2027 assesses whether RPJMN I is achieving targets. If substantial deviations occur, the President can revise RPJMN via amended Perpres, realigning strategies while maintaining consistency with RPJPN's long-term vision.

Final Evaluation (2029): As RPJMN I concludes, a final evaluation informs RPJM Nasional II (2030-2034) formulation by the next president. Lessons learned, successful programs, and persistent challenges guide the second phase toward Indonesia Emas 2045.

4.3 Sectoral Integration Mechanisms

Coordinating Ministries' Role: Indonesia's four coordinating ministries (Politics-Law-Security, Economic Affairs, Human Development-Culture, Maritime-Investment) synchronize sectoral policies to prevent fragmentation. For RPJMN implementation, they (1) chair inter-ministerial coordination meetings on cross-cutting issues; (2) mediate inter-agency conflicts over resources or mandates; (3) ensure complementarity between related programs (e.g., education and employment policies); and (4) report to the President on systemic bottlenecks.

Flagship Programs (Program Prioritas Nasional): RPJMN identifies flagship programs receiving enhanced focus, such as (1) Food Estate Development; (2) Downstream Industrialization; (3) New Capital (IKN) Phase 1; (4) National Health Insurance (JKN) Universalization; and (5) Digital Talent Development. These programs involve multiple ministries, requiring integrated governance structures (steering committees, dedicated secretariats).

Spatial Planning Integration: RPJMN aligns with RTRWN (National Spatial Plan) and provincial/kabupaten RTRW, ensuring development activities respect environmental carrying capacity, disaster risk zones, and conservation areas. For example, infrastructure projects must comply with spatial allocations, preventing encroachment on protected forests or agricultural land.

Data Integration (Satu Data Indonesia): Perpres 39/2019 on One Data Indonesia mandates unified data standards across government. RPJMN implementation leverages this to (1) share beneficiary databases for social programs (preventing duplication); (2) integrate economic statistics for evidence-based policy; (3) coordinate spatial data for infrastructure planning; and (4) publish open data for public accountability.

4.4 Climate and Environmental Mainstreaming

Green Budget Tagging: Finance Ministry tags budget line items supporting climate mitigation and adaptation, tracking how much of APBN contributes to the climate neutrality target (Vision Emas 5). This transparency enables assessment of whether fiscal resources match climate commitments.

Emission Reduction Pathways: RPJMN 2025-2029 sets a 15-20% emission intensity reduction vs 2020 baseline, requiring (1) renewable energy capacity increase from 12% to 25% of power mix; (2) phasing down coal-fired plants (no new permits, accelerated retirement); (3) sustainable peatland and forest management reducing land-use emissions; and (4) transportation electrification (EV adoption targets).

Climate Financing Mobilization: Indonesia needs USD 200+ billion for climate action by 2030. RPJMN strategies include (1) blended finance combining public budgets with private capital; (2) green bonds issuance by Government and BUMN; (3) accessing multilateral climate funds (Green Climate Fund, Climate Investment Funds); (4) carbon market participation (voluntary and compliance markets); and (5) debt-for-nature swaps reducing fiscal burden while funding conservation.

Just Transition Principles: As coal phase-down accelerates, RPJMN incorporates just transition measures protecting affected workers and communities: (1) reskilling programs for coal miners transitioning to renewable energy jobs; (2) economic diversification in coal-dependent regions; (3) social safety nets for displaced workers; and (4) community-led renewable energy cooperatives.

5.0 Strategic Insights and Sector-Specific Impacts

5.1 RPJMN I as Foundation for Indonesia Emas 2045

RPJMN 2025-2029 is the critical first phase in the 20-year journey to Indonesia Emas 2045. Success in this period determines whether Indonesia achieves (1) middle-income stability (avoiding the "middle-income trap"); (2) structural economic transformation (from commodity-dependent to value-added); (3) human capital foundations (education and health systems world-class); and (4) climate resilience infrastructure. Failure to meet RPJMN I targets makes 2045 goals aspirational rather than achievable.

Lessons from RPJMN 2020-2024: The previous RPJMN under President Jokowi faced COVID-19 disruptions but achieved infrastructure expansion (toll roads, airports, ports) and digital acceleration. However, challenges persisted in (1) income inequality (Gini coefficient stagnant); (2) education quality (PISA scores below expectations); (3) deforestation (palm oil and mining pressures); and (4) bureaucratic efficiency (corruption and red tape). RPJMN 2025-2029 addresses these by emphasizing social equity, human capital quality, environmental sustainability, and governance reform.

5.2 Priority Sector Impacts

Downstreaming and Industrialization: RPJMN prioritizes value-added processing of Indonesia's raw materials (nickel, tin, bauxite, palm oil, fisheries). Policies include (1) export bans on raw minerals continuing; (2) fiscal incentives for smelters and refineries; (3) industrial estate development in resource-rich regions; and (4) technology transfer agreements with foreign investors. This aims to create manufacturing jobs and increase export value, moving Indonesia from exporter of raw materials to industrial products.

Food Security and Agriculture Modernization: The Food Estate program and rice self-sufficiency goals drive (1) irrigation expansion in Kalimantan and Papua; (2) mechanization and precision agriculture adoption; (3) seed technology improvement (drought-resistant, high-yield varieties); (4) post-harvest infrastructure reducing losses; and (5) agricultural insurance protecting farmers from climate shocks. Target: Rice self-sufficiency maintained, vegetable and meat production increased 20-30%.

Digital Economy Expansion: RPJMN accelerates Indonesia's digital transformation through (1) nationwide 5G rollout by 2027; (2) data center development (positioning Indonesia as regional digital hub); (3) fintech and e-commerce regulatory frameworks balancing innovation and consumer protection; (4) digital literacy programs reaching rural areas; and (5) AI and IoT adoption in manufacturing and services. Target: Digital economy USD 200+ billion by 2029 (from USD 77 billion in 2023).

Healthcare Universalization: JKN (Jaminan Kesehatan Nasional) expansion aims to cover 100% of Indonesia's population by 2027. Strategies include (1) primary care strengthening (puskesmas upgrades, community health worker deployment); (2) specialist physician distribution to underserved regions; (3) pharmaceutical price controls and generic drug promotion; (4) telemedicine integration for remote areas; and (5) preventive health campaigns (immunization, maternal-child health).

5.3 Regional Development and Equity

Eastern Indonesia Acceleration: Decades of Java-centric development left eastern regions (Maluku, Papua, NTT) lagging. RPJMN 2025-2029 prioritizes (1) Trans-Papua road completion; (2) airport and port upgrades for connectivity; (3) special autonomy fund effectiveness monitoring; (4) renewable energy (solar, geothermal) for off-grid areas; and (5) education and health service expansion. Target: Reduce inter-regional HDI gap by 25%.

IKN Development (Nusantara Capital): Phase 1 (2024-2029) focuses on core government area construction, requiring (1) government building completion by 2027; (2) civil servant relocation (~20,000 families); (3) supporting infrastructure (hospitals, schools, utilities); (4) environmental sustainability (70% green open space); and (5) smart city technology integration. Target: Presidential Palace and Parliament operational by Independence Day 2028 (100 years of IKN vision).

Urban-Rural Integration: To prevent excessive urbanization and rural depopulation, RPJMN promotes (1) agropolitan development (rural areas with urban amenities); (2) digital connectivity enabling remote work; (3) agro-industry in rural regions creating non-farm jobs; and (4) integrated village development programs (Desa Mandiri).

5.4 Risks and Adaptive Strategies

Global Economic Volatility: Trade wars, recessions, or commodity price crashes can derail RPJMN targets. Mitigation: (1) Economic diversification reducing reliance on single commodities; (2) Fiscal buffers (sovereign wealth fund, contingency reserves); (3) Trade diversification (RCEP, bilateral FTAs) reducing dependence on single markets.

Political Risks: Coalition fragility or civil unrest could disrupt policy implementation. Mitigation: (1) Inclusive cabinet formation; (2) Musrenbang participation ensuring grassroots buy-in; (3) Transparent communication of development progress.

Climate Shocks: Droughts, floods, or pandemics can set back development. Mitigation: (1) Disaster risk reduction investments; (2) Climate-resilient infrastructure standards; (3) National reserve systems (food, medical supplies); (4) Insurance schemes (agricultural, health).

Capacity Constraints: Weak institutional capacity in regions or ministries can bottleneck implementation. Mitigation: (1) Capacity building programs; (2) Technical assistance from central government or donors; (3) Performance incentives for effective implementation; (4) Technology adoption reducing manual burdens.

Official Source: Perpres No. 12 Tahun 2025 | PDF Download, Lampiran I PDF

Related Regulations: UU 59/2024 (RPJPN 2025-2045), UU 25/2004 (Sistem Perencanaan Pembangunan Nasional), Perpres 39/2019 (Satu Data Indonesia)

Authority: Presiden Republik Indonesia | Issued: Early 2025 | Term: 2025-2029

Analysis Type: Regulatory Matrix Analysis (RMA) | Article Series: REGPRIMA #88/100

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