In his first year as Indonesia’s president, Prabowo Subianto aimed to promote economic growth and social reform. However, his administration has faced significant challenges amid economic realities. A wave of protests erupted in August 2023, largely driven by the rising cost of living, corruption, and inequality, pressuring the government to retract benefits for politicians that had angered the public. Earlier protests highlighted dissatisfaction with budget cuts affecting healthcare and education.
Central to Prabowo’s agenda is a $28 billion annual free school meals program intended to combat child malnutrition and enhance educational outcomes. Despite these intentions, reports have emerged of over 9,000 children falling ill since the program’s launch in January, raising questions about its effectiveness and financial burden on public resources.
Amidst a population of over 280 million, Indonesia has experienced economic growth around 5% in recent years, yet faces pressures from declining global demand and competition from countries like Vietnam and Malaysia. Protests in August resulted in ten fatalities and expressed widespread discontent with the government’s prioritization of costly prestige projects over immediate economic support.
Officials, including Coordinating Minister for Economic Affairs Airlangga Hartarto, defend government policies aimed at stimulating demand and job creation. The government is also exploring a sovereign wealth fund targeted at renewable energy and manufacturing to foster sustainable growth.
Challenges extend further as U.S. tariffs have raised costs for Indonesian exporters, compounding existing business difficulties due to regulatory burdens. The recent trade agreement with the European Union may offer some respite, but attracting foreign investment remains a concern. Analysts emphasize the need for infrastructure improvements and skilled labor development to harness economic potential and fortify Indonesia’s position in the global market. As the administration seeks to navigate these complexities, the future of Prabowo’s ambitious growth agenda remains uncertain.
Source: https://www.bbc.com/news/articles/c2lx2j0k1k0o?at_medium=RSS&at_campaign=rss