Indonesia president touts economy, social welfare drive
JAKARTA: Indonesian President Prabowo Subianto emphasized an expectation-defying economy, low unemployment rate and slew of ambitious social welfare initiatives as he delivered his first state address to parliament on Friday. 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 Southeast Asia's largest country into a major global powerhouse. But his hallmark schemes, including a free school meal program 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 percent growth.
'Amid political conflict, global economic conflict, (and the US) trade war... Indonesia still managed to grow above five percent,' he told parliament.
After US President Donald Trump threatened Indonesia with a heavy tariff rate of 32 percent in April, Prabowo negotiated a lower levy of 19 percent in return for bringing down trade barriers for American goods. Last week, the statistics agency showed Q2 growth had accelerated to 5.12 percent, beating forecasts and up from 4.87 percent 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 program for schoolkids 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 said.
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 on Friday, ahead of the archipelago nation's independence day on Sunday. — AFP
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