Economist Refutes The Economist's Claims: Indonesia's Economy in Better Shape
Criticism from British media The Economist towards President Prabowo Subianto’s government is viewed as stemming from differing economic ideological perspectives. Economist Dr Surya Vandiantara argues that the criticism arises because current government policies prioritise economic independence and equitable welfare distribution.
According to Surya, government initiatives such as Free Nutritious Meals, Red and White Village Cooperatives, food security, and Danantara aim to strengthen national economic sovereignty and reduce dependence on other nations.
“Programmes such as Free Nutritious Meals, Kopdes Merah Putih, food security, and Danantara are designed to enable Indonesia to be self-reliant without reliance on any foreign nation,” Surya said.
A lecturer at Muhammadiyah University of Bengkulu’s Faculty of Economics, Surya contends The Economist’s criticism stems from its belief that economic efficiency can only be achieved through complete market mechanisms without government intervention.
“The free-market economic school endorsed by The Economist advocates for all economic activities to be left to market forces without any government intervention,” he said.
Surya notes this paradigm differs from the economic concepts adopted by Indonesia’s founding fathers, who assigned the state responsibility for strategic sectors affecting public welfare.
“The economic framework established by our founding fathers holds that production factors impacting public welfare fall under state responsibility. Conversely, The Economist views such state responsibilities as interference,” Surya stated.
He argues that full implementation of a free-market system could enable new forms of economic colonisation. Without state protection, small and medium enterprises (SMEs) and small-scale farmers would struggle to compete with large corporations from developed nations.
“Imperialist nations with substantial capital would easily dominate Indonesia’s market if the free-market economic model advocated by The Economist were adopted. SME entrepreneurs, such as market traders and small farmers, would be unable to compete with imperialist giants,” he added.
Surya also addresses The Economist’s critique of Indonesia’s debt ratio and fiscal deficit, asserting Indonesia’s fiscal health is relatively stronger compared to nations following free-market systems.
According to him, as of April 2026, the state budget deficit stood at Rp 164.4 trillion, equivalent to 0.64% of GDP, an improvement from the previous 0.93%.
“This situation brings positive momentum to Indonesia’s economy. The improving budget deficit refutes The Economist’s previous negative narrative,” he said.