From his vision of reform policies for the country's new era to his actual results, Indonesia's new President Prabowo Subianto has received strong support from the people, consolidating his image as a decisive and effective leader.
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| The Golden Indonesia Vision 2045 aims to develop the archipelago's economy with a GDP per capita of more than 30,000 USD, a GDP of 9.8 trillion USD and 70% of the population belonging to the middle class. (Illustration photo. Source: ING) |
Looking back at the “starting stage” since officially taking office, at the first Cabinet meeting in 2025 (January 22), President Prabowo admitted that there are still areas that need improvement, but his young administration can be proud of the results that have helped the world's eighth-largest economy (according to the IMF's ranking in 2024) get closer to its set goals.
Realizing the Golden Indonesia Vision
Prabowo Subianto took office amid the popularity of his predecessor Joko Widodo. Southeast Asia's most populous nation was stable, with solid growth of 5.05% in the previous year. So it can be said that the results of the Kompas Group survey on his first 100 days in office were very positive.
Accordingly, 80.9% of the people expressed satisfaction with Mr. Prabowo's leadership, especially the low- and middle-income classes. In particular, 89.4% of the respondents expressed confidence in the leadership and 94% had a positive assessment of the current President.
After more than 100 days in office, President Prabowo is aiming to realize his vision of a Golden Indonesia by 2045, by approving the National Long-Term Economic Development Strategy 2025-2045, implementing a series of policies to promote growth and sustainable development, aiming for an economic growth rate of 8%.
To escape the middle-income trap, President Prabowo has approved a number of economic transformation strategies with five main development directions: Effective innovation with many social structure policies and development of economic sectors, especially industrialization; implementing a green economy; digital transformation; creating value from domestic supply chains; developing economic growth centers.
One of the new Indonesian President’s big ambitions is to make the country self-sufficient in food and energy in the next 4-5 years. The government has also earmarked a record budget of Rp 139.4 trillion ($8.8 billion) to support food programs by 2025, up nearly 22% from last year.
Regarding energy security, President Prabowo advocates investing in renewable energy projects such as solar power, wind power and hydropower to reduce dependence on fossil fuels and ensure sustainable energy supply.
Senior researcher Veeramalla Anjaiah of the Center for Strategic and International Studies (CSIS) said that there are still many challenges “awaiting” the Indonesian leader, typically the situation of inflation and rising prices; maintaining stable prices of essential commodities such as rice; and creating jobs, especially for young people, when the unemployment rate is high; environmental challenges and uneven development between regions; ensuring domestic security and dealing with issues such as terrorism and crime, corruption.
However, Mr. Anjaiah appreciated Indonesia becoming the first Southeast Asian country to officially join BRICS, demonstrating a change in President Prabowo's approach - focusing on raising the country's position in the international arena, as Jakarta called this a strategic step, to strengthen cooperation with leading developing countries.
In addition, one of President Prabowo's most notable election pledges, which has been controversial in terms of logistics and costs, is in some ways appreciated for its "people-centric goals." The unprecedented program - a $28 billion free meal for 83 million students and pregnant women - was officially launched in January 2025 to end the problem of stunted growth in children, which affects about 20% of children under the age of five in Indonesia.
Since October 2024, the Indonesian government has built about 40,000 houses.
housing for low-income people, with the goal of building three million houses a year for this group. In order to ensure social security for workers and stimulate purchasing power, President Prabowo announced a decision to increase the minimum wage by 6.5% by 2025 and organize free health check-ups for 52.2 million people.
The problem of protecting domestic production?
The new president’s pledge to restart industrialization to achieve his 8% growth target is facing significant challenges. Jakarta’s standoff with US tech giant Apple (October 2024) is seen as a case in point, reflecting the major problem in choosing a growth path. Indonesia is caught between its ambition to protect domestic production and its desire to open up to the world to achieve its desired growth.
The conflict of interest with Apple (which banned the sale of the iPhone 16 in Indonesia for not complying with local content regulations) highlights how government restrictions can deter important foreign direct investment (FDI).
Analysts say Jakarta’s assertive stance could backfire on President Prabowo’s commitment to industrialization, especially since he expects the move to be driven by FDI. Investors are always looking for countries with more favorable regulations, strong infrastructure and transparent incentives.
Indonesia, obsessed with promoting domestic production and protecting local industries, has sometimes been accused of using tough rules. A study by Arianto a Patunru of the Australian National University found that the country has imposed 394 trade restrictions since 2015, far exceeding other middle-income ASEAN members. Malaysia, Thailand and Vietnam have introduced only 102, 112 and 58 trade-unfriendly measures, respectively.
In fact, some policymakers have advocated import substitution policies to stimulate domestic production and reduce imports. However, CSIS research has shown that overly rigid protection of domestic production sometimes hinders the competitiveness of domestic enterprises in the global value chain.
The World Bank researchers also said that Indonesia faces lower competitiveness due to its limited integration into global value chains. The Prabowo administration needs to make a strong shift from a policy approach focused on import substitution to a more globalized economy. And FDI can help the Indonesian economy address these shortcomings.
The first 100 days of a new administration are often referred to as the “honeymoon period” and this period for President Prabowo has been filled with mixed emotions, some optimism, some skepticism. However, the initial days of uncertainty in a long term and the “plus points” in policy reform – the eighth President of Indonesia is expected to successfully realize ambitious political promises.
Source: https://baoquocte.vn/hon-100-ngay-hieu-qua-cua-chinh-phu-tong-thong-indonesia-306561.html
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