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Indonesia
This Week in AsiaEconomics

Indonesia’s Prabowo touts economic wins in defiant first state of the nation address

The Indonesian president has also vowed to continue the ‘difficult and unpopular’ task of cracking down on corruption

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Indonesian President Prabowo Subianto delivers his first state of the nation address on Friday. Photo: AP
Resty Woro Yuniar
Indonesia’s President Prabowo Subianto has used his first state of the nation address to spotlight the country’s economic resilience and independent foreign policy, striking a defiant tone against colonial legacies and geopolitical rivalry while positioning himself as a reformer at home.

In a wide-ranging speech before the People’s Consultative Assembly on Friday, the 73-year-old leader – inaugurated last October – pointed to second-quarter growth of 5.12 per cent as a sign of the economy’s robustness despite “global political tension and trade war”.

Prabowo also emphasised his government’s approach to diplomacy, praising Indonesia’s growing ties with both developing and Western powers.

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“Indonesia was the guest of honour at the independence celebrations of India and France,” he said. “We completed the EU [Comprehensive Economic Partnership Agreement] trade negotiations, and [a trade deal] with the United States.”
In July, Indonesia and the European Union announced they had reached a political agreement on a long-delayed free-trade pact, nearly a decade in the making. The same month, Prabowo secured a deal with US President Donald Trump that slashed tariffs on Indonesian imports to 19 per cent, down from the 32 per cent Washington had threatened in April.
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The president also celebrated Indonesia’s decision to join the Brics bloc – originally composed of Brazil, Russia, India, China and South Africa – while reaffirming a commitment to non-alignment.
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