Economics
Prabowo Plays Populist Card to Energize Indonesia’s Growth
- Indonesia’s GDP growth has averaged 5% in the past two decades
- New leader seeking growth of 8%, a level last seen in 1996
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Indonesian President Prabowo Subianto is banking on a raft of populist measures in his first months in office to energize consumers in Southeast Asia’s largest economy, part of his goals to boost growth to levels not seen in nearly three decades.
The decisions — some of which override proposals of the president’s ministers — are aimed at jolting economic growth from a 5% average pace over the last two decades to Prabowo’s lofty target of 8%. Many will come at a steep cost to the state budget, putting investors on alert.