In the State of the Nation address, Indonesia’s new president outlines bold reforms and welfare ambitions.
President Prabowo Subianto marked his first State of the Nation address on Aug 15 with sweeping pledges to dismantle exploitative “greednomics” practices, root out corruption, and expand social welfare. Speaking before parliament in Jakarta, he set an assertive tone for his administration’s economic and governance priorities, less than a year after taking office.
Targeting Exploitative Business Practices
Prabowo said his government will act against monopolies, price-fixing, hoarding of subsidised goods, and deliberate market manipulation — practices he labelled “serakahnomics” or “greednomics”. He accused some corporations of sacrificing public welfare for profit and pledged firm legal action against offenders.
Support for Farmers and Cooperatives
To prevent middlemen from controlling subsidised goods, more than 80,000 village cooperatives have been established nationwide. These cooperatives aim to deliver fertiliser directly to farmers, supply free agricultural equipment, and ensure produce is purchased at stable prices. “Too many farmers and fishermen are still starving,” Prabowo said, vowing to improve rural incomes.
Anti-Corruption and Economic Efficiency
The president reported that his government has saved 300 trillion rupiah (US$18 billion) by cutting wasteful expenditures such as unnecessary overseas trips and excessive meetings. He promised decisive action against major corruption cases, illegal mining, and smuggling, and warned officials who shield such activities.
Flagship Welfare Programmes
Prabowo highlighted his free nutritious meal programme, launched in January, which has reached over 82 million schoolchildren and pregnant women in just seven months. He framed it as central to his “Golden Indonesia 2045” vision, alongside free health check-ups and boarding schools for low-income children. Critics, however, have warned of a projected US$40 billion budget deficit by 2025.
Financing the Vision
To address funding concerns, Prabowo cited the new sovereign wealth fund Daya Anagata Nusantara (Danantara), expected to mobilise up to US$900 billion in state assets. He also pointed to trade and investment opportunities from strengthening diplomatic ties, including a nearly finalised comprehensive economic partnership with the EU.
A Presidency of Continuity and Change
Prabowo, who won the February 2024 election with nearly 60% of the vote, took office in October and pledged to continue much of Joko Widodo’s development agenda while shifting focus towards human capital. Foreign policy observers expect him to adopt a more assertive and globally engaged approach, balancing relations with China and the US.
Prabowo’s inaugural policy blueprint signals a blend of welfare expansion, anti-corruption enforcement, and economic reform aimed at reducing inequality and strengthening Indonesia’s global standing. Its success, however, will hinge on managing fiscal pressures while delivering on ambitious promises that resonate across both rural and urban constituencies.
Sources: CNA (2025) , Al Jazeera (2025)
Keywords: Prabowo Subianto, Greednomics, Corruption, Golden Indonesia 2045, Sovereign Wealth Fund, Free Meal Programme
