Indonesia\’s president champions booming economy and sweeping social welfare reforms

Prabowo Promises Rapid Growth for Indonesia

State‑Led Expansion Strategy

Former special forces commander Prabowo Subianto has taken the Indonesian presidency in October, setting a bold agenda aimed at turning Southeast Asia’s largest nation into a global powerhouse. He vows a fast, state‑driven growth that aims to leap ahead of regional expectations, while tackling low unemployment rates and an array of ambitious social welfare initiatives.

Economic Performance Highlights

• Q2 Growth Accelerated – Indonesia’s second‑quarter economic output reported an unexpected rise to 5.12 %, surpassing forecasts and improving from the previous quarter’s 4.87 %.
• Unemployment Declined – The unemployment rate has dropped to its lowest level since the Asian financial crisis, signaling a tightening labor market.
• Tariff Negotiations Successful – After US President Donald Trump threatened a 32 % tariff rate, Prabowo secured a reduced levy of 19 % in exchange for easing trade barriers for American goods.

Social Welfare Initiatives and Controversies

• Free School Meal Programme – Prabowo stresses a free lunch programme intended to curb childhood stunting. The initiative’s reach has expanded to 20 million people, though the scheme has faced criticism over funding cuts, reported delays and food poisoning incidents.
• Public Pressure and Student Protests – February saw nationwide protests opposing widespread funding cuts to the school meal programme and a newly established sovereign wealth fund.
• Policy Continuity Pledges – Prabowo succeeded popular former president Joko Widodo in a third presidential attempt, campaigning on a pledge to maintain continuity with existing policies.

Upcoming Budget and Independence Day Agenda

Prabowo will unveil Indonesia’s 2026 budget on Friday, ahead of the archipelago nation’s independence day on Sunday. The presentation marks a critical step in solidifying Prabowo’s commitment to a high‑growth trajectory, social welfare expansion, and a coordinated economic framework that aims to position Indonesia as a major global contender.

Key Takeaway

Indonesia’s new president is committed to rapid, state‑driven growth, evidenced by strong Q2 performance, reduced unemployment, and a top‑line shift in tariff negotiations. However, the social welfare agenda continues to face public scrutiny over funding cuts and program delays, underscoring the challenges surrounding large‑scale policy implementation.