Continuity is a central theme for the Prabowo-Gibran administration – World Countries for Kids
Indonesia has made remarkable democratic gains since the fall of an authoritarian regime in the year 1998, enjoying considerable political and media pluralism and undergoing multiple, peaceful handovers of power. Noteworthy challenges that persist include discrimination and violence against minority groups, conflict in Papua, systemic corruption, and the politicized use of blasphemy and defamation laws.
The directly elected president serves as both head of government and head of state. Vice presidents and presidents can serve maximum two five-year terms. On April 22, 2024, Indonesia’s General Election Commission formally declared Prabowo Subianto as the nation’s new president, and Gibran Rakabuming Raka (the eldest son of former President Joko Widodo) as the new vice president after constitutional court rejected appeals of two beaten presidential candidates.
The Prabowo-Gibran ticket received 96 million votes (roughly 59 percent of the total votes). Prabowo assumed office on 20th October 2024. His administration has inherited an economy that has seen improvements in sovereign ratings under the outgoing president. Continuity is a central theme for the Prabowo-Gibran administration, promising to retain many of Jokowi’s policies, including modernizing infrastructure, developing downstream commodities sectors, and maintaining a disciplined macroeconomic governing agenda.
The government’s bar on unprocessed nickel and bauxite export, with plans to expand to many other metals, has elevated Indonesia’s spot in the global resource supply chain, mainly for electric vehicle batteries, resulting in increased exports. Furthermore, Prabowo pledges to continue the ambitious US$35 billion project of moving the capital to the island of Borneo, around 2,000km from Jakarta.
The Prabowo-Gibran administration has set an ambitious economic growth target of eight percent and aims to enhance Indonesia’s energy self-sufficiency via the promotion of biodiesel derived from palm oil. Analysts forecast a growth rate of 4.5-5 percent for Indonesia in 2024, ascribed to lower commodity prices and subdued global demand.
Prabowo’s vision includes transformation of Indonesia into a developed and advanced economy and integration of the Indonesian economy into global value chains. Such reforms necessitate regulatory changes to facilitate foreign investment, addressing a nascent tax base, and deepening capital markets. So, foreign enterprises and investors eyeing Indonesia need to adopt a long-term perspective.
President Prabowo Subianto justified forming largest-ever Cabinet with 109 members by saying that he wants his government to be strong. “I want to create a strong government that would unite our multicultural society and diverse political interests,” said Mr. Subianto before inviting over 100 people for interviews at his house last week. “It must be a big coalition and some will say my Cabinet is fat.”
The Cabinet features politicians from a rainbow coalition of seven parties who supported his triumph in the February election and figures associated with Mr. Widodo’s Cabinet, who were reappointed to continue their jobs under Mr. Subianto’s Presidency. Point to be noted here is that cabinet of Mr. Subianto’s predecessor had 34 Ministers and head of government agencies.