[REVISION HISTORY]

Prabowo Subianto economic and development policy

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2026-09-18 07:22 UTC → 2026-09-18 16:36 UTC · added ~~removed~~

President Prabowo Subianto has focused his administration’s development goals on household welfare and addressing systemic economic issues in Indonesia. During the 11th Eastern Economic Forum in Russia, the President argued that national success should be measured by inclusive indicators such as food nutrition, affordable housing, and job availability rather than solely by economic growth figures. This approach supports initiatives like free nutritious meals for children and pregnant women. He also addressed the decline of the Indonesian middle class and pledged to combat economic leakage, specifically targeting underinvoicing in coal exports. Expanding his reform agenda, the administration has initiated a major restructuring of state-owned enterprises (BUMN) through the formation of Danantara Indonesia. While initial estimates suggested 300 to 400 entities, mapping revealed 1,074 entities. As of August 2026, Danantara ~~has~~ had eliminated 290 entities through mergers, liquidations, and divestations to improve accountability and reduce waste. In September 2026, the restructuring—often referred to as ‘Prabowonomics’—accelerated. President Prabowo stated that 328 companies have been closed so far, with a target to reach at least 750 by December. To mitigate the impact of these closures, the government plans to offer early retirement or transfer high-performing employees. International observers, including Professor Rovshan Ibrahimov of Webster University, noted that this decisive approach to dismantling deeply rooted structures could serve as a lesson for Western political leaders. Regarding national security, Prabowo noted that Indonesia's defense budget remains among the smallest in ASEAN, currently under 2 percent of GDP. The Ministry of Defense was allocated Rp187.1 trillion for 2026, with a projected Rp189 trillion for 2027. On the investment front, the President reported that 2025 investment realization reached approximately Rp1,931 trillion, contributing to the creation of 2.7 million new jobs.

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