Ambitious Growth Target Set by Indonesian Leader
Indonesian President President Prabowo Subianto has expressed strong confidence that Indonesia can achieve an ambitious annual GDP growth target of 8%, according to reports from the recent Forbes Global CEO Conference in Jakarta. The president reportedly stated that this growth would be driven primarily by efforts to boost domestic consumption through large-scale social programs.
“I think 8% is very achievable,” Prabowo was quoted as saying during his conversation with Forbes Media chairman Steve Forbes at the October 14-15 conference. The gathering attracted global business, financial and academic leaders to discuss economic prospects in the world’s fourth most populous nation.
Free Meal Program as Economic Catalyst
Sources indicate that the centerpiece of Prabowo’s economic strategy involves a massive free meal program for school children and pregnant women. The president reportedly claimed that every $1 spent on this initiative would generate returns between $5 to $7, stating “My first purpose is to overcome the hunger of children.”
According to the report, the Indonesian government has allocated 335 trillion rupiah ($20 billion) for next year to support the program, which aims to feed over 34 million school children daily. The initiative draws inspiration from similar programs in countries like India, which has operated a long-standing mid-day meal scheme.
Infrastructure Development and Job Creation
Analysts suggest the program’s implementation requires significant infrastructure development. The report states that the government has already built more than 11,000 kitchens across the archipelago and plans to expand this to 30,000 by year’s end. With each kitchen employing approximately 50 people, sources indicate this could create up to 1.5 million jobs.
Prabowo reportedly emphasized that “This is providing a big boost to the economy in my opinion,” while also addressing widespread child malnutrition issues observed during his campaign travels. The program has also reportedly boosted incomes for farmers and fishermen, with projections suggesting their earnings could increase 100% by 2026.
Addressing Implementation Challenges
The meal program has faced some criticism following multiple food poisoning incidents that resulted in hospitalizations, according to reports. Prabowo acknowledged there have been “glitches” but asserted these were minimal relative to the program’s scale. Sources indicate the government is increasing oversight to reduce such incidents to “as next to zero as possible.”
Broader Economic Reforms
Beyond the meal program, the president outlined additional economic measures including the creation of Danantara, a new sovereign wealth fund with over $1 trillion in assets. The government is also reportedly rationalizing Indonesia’s extensive state-owned enterprise sector, which includes over 1,000 SOEs, most generating low returns of 1-2%.
“I’ve given direction to the chairman to rationalize everything, to cut down from 1,000 SOEs to a more rational figure, of maybe 200, and then run them in line with international standards,” Prabowo was quoted as saying.
Anti-Corruption and Domestic Market Focus
The president reportedly asserted his determination to intensify anti-corruption efforts, stating “Corruption will destroy countries, nations and regimes. I’m determined to cut down on corruption.”
On international trade, analysts suggest recent U.S. tariff impositions have served as a “wake-up call” for Indonesia. The government’s strategy reportedly emphasizes domestic market development, with Prabowo stating “We want to empower the poor of Indonesia, which will create domestic consumption.”
Historical Context and Implementation Timeline
According to World Bank data referenced in the report, Indonesia’s GDP growth has hovered around 5% since 2000, following recovery from the late 1990s Asian financial crisis. Prabowo, who previously ran for president twice before winning in 2024, had reportedly promised both the 8% growth target and free lunch program during his campaign.
The economic vision comes alongside other major global technological developments, including Apple’s M5 chip advancements and significant AI and GPU upgrades in consumer technology, as well as Ericsson’s strategic navigation of market challenges, highlighting the diverse global landscape in which Indonesia’s economic transformation is unfolding.
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