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View all search resultsEconomy strong on paper, but people struggling
Two years into Prabowo Subianto’s presidency, the economy is showing respectable growth and contained inflation despite global pressure, but many Indonesians say they struggle to secure higher incomes or better jobs.
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President Prabowo Subianto chairs a limited cabinet meeting on Sept. 7 at the Presidential Palace to discuss economic issues. (BPMI Setpres/-)
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wo years into Prabowo Subianto’s presidency, the economy has proven resilient and even accelerated under global pressure, but many Indonesians struggle to secure stable incomes or better jobs, while the rupiah’s depreciation and a dramatic stock market decline reflect a lack of investor confidence.
Prabowo assumed office in late 2024, and under his leadership Indonesia’s gross domestic product expanded by 5.11 percent in 2025 and by 5.45 percent in this year’s first half, well above the 5 percent rate the country had become accustomed to since 2013.
The acceleration in GDP growth was “commendable given the challenging external environment,” Economist Intelligence Unit (EIU) analyst Qi Hang Tay told The Jakarta Post on Monday.
Prabowo’s two years in office were dogged by continuous global turbulence, beginning with last year’s tariff threats from the United States that hurt Indonesian exports and this year’s Iran war that pushed up global oil prices and hence Indonesia’s energy import costs.
“However, whether [the higher GDP growth] counts as an 'achievement' is debatable. While the administration has maintained macroeconomic stability, this largely reflects a continuation of existing trends rather than a significant structural breakthrough or a new phase of accelerated growth,” Tay said.
The growth had not translated into “sufficiently strong improvements” in household incomes and employment opportunities, Tay explained.
“Many Indonesians continue to face difficulties securing well-paying jobs, particularly in the formal sector, while wage growth has struggled to keep pace with their expectations,” elaborated the analyst.
