Prabowo touts economy and social welfare drive
JAKARTA: Indonesian President Prabowo Subianto emphasised an expectation-defying economy, low unemployment rate and slew of ambitious social welfare initiatives as he delivered his first state address to parliament.
The ex-special forces commander took office in October after a campaign to rehabilitate an image tainted by allegations of rights abuses committed during the Suharto dictatorship in the late 1990s.
The 73-year-old populist leader has pledged fast, state-driven growth to transform South-East Asia's largest country into a major global powerhouse.
But his hallmark schemes, including a free school meal programme to address childhood stunting, have strained state coffers, stoked investor fears and triggered student protests.
In his speech, Prabowo defended his social policies and pointed to positive second-quarter economic results after his government set an ambitious goal of eight per cent growth.
'Amid political conflict, global economic conflict, (and the US) trade war ... Indonesia still managed to grow above five per cent,' he told parliament yesterday.
After US President Donald Trump threatened Indonesia with a heavy tariff rate of 32% in April, Prabowo negotiated a lower levy of 19% in return for bringing down trade barriers for American goods.
Last week, the statistics agency showed 2Q growth had accelerated to 5.12%, beating forecasts and up from 4.87% the previous quarter.
He also pointed to the unemployment rate, which has dropped to its lowest since the Asian financial crisis.
On his social welfare agenda, Prabowo shrugged off criticism of the billion-dollar free lunch programme for schoolchildren and pregnant mothers, touting its reach of 20 million people.
'Our goal ... is to be free from poverty, free from hunger, free from suffering,' he added.
He faced protests across Indonesia in February for widespread cuts to fund the scheme – which has been dogged by reported delays and food poisonings – as well as a new sovereign wealth fund.
Prabowo succeeded the popular Joko Widodo last year in a third attempt at the presidency after a campaign in which he pledged policy continuity.
Prabowo will also unveil the 2026 budget later, ahead of the archipelago nation's independence day, which will be celebrated tomorrow. — AFP
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