Indonesia’s president leans on golden promises as ‘dark’ economic reality bites

With a shrinking middle class, falling commodity prices and youth unemployment on the rise, experts warn of an economic paradox in the making

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Published: 8:00am, 8 Mar 2025Updated: 8:07am, 10 Mar 2025

As student-led protests against austerity measures swept across Indonesia last month, President Prabowo Subianto hit back at critics of his policies by declaring that the country was on track to surpass many of the world’s most advanced economies by mid-century.

“Indonesia will be ahead of Japan, ahead of the United Kingdom, ahead of France,” he proclaimed at a coalition party ceremony on February 26. “Why then is Indonesia in the dark?”

The president’s remarks were doubtless a response to the student-led movement, which calls itself “Indonesia Gelap” (Dark Indonesia) to contrast with the government’s “Indonesia Emas” (Golden Indonesia) vision of reaching developed nation status by 2045 – the centenary of Indonesia’s independence.

These protests have exposed a growing gulf between Prabowo’s lofty aspirations and the realities on the ground. Students took to the streets to condemn his decision to redirect billions from the state budget into flagship projects, including a new sovereign wealth fund projected to manage US$900 billion in assets and a US$28 billion-per-year free meal programme for children and expectant mothers.

Protesters holding placards and a banner reading “Indonesia Gelap” march during an anti-government protest rally in Jakarta on February 21. Photo: Reuters

For Prabowo, the protests marked the first major test of his presidency, just four months into his tenure. Analysts warn that public discontent could spiral if the nation’s economic conditions worsen. But the former military general appears undeterred, doubling down on his vision to transform Southeast Asia’s largest economy into a future global powerhouse.

At the core of his plan is a balancing act between rapid economic growth – aiming for 8 per cent annually by 2029 – expansive social spending and strict fiscal restraint. Yet his administration’s early months have revealed deep fault lines, with austerity measures, rising unemployment and a shrinking middle class testing the patience of workers, students and business owners alike.