Economist: The Economist's Criticism of Indonesia's Economic Management Rooted in Free Market Theory

A number of economists have responded to intense criticism from international parties, such as The Economist, regarding the national economic management under President Prabowo Subianto’s administration.

One such economist is Dr. Surya Vandiantara, an economic observer from Muhammadiyah University of Bengkulu, who stated that the criticism stems from a sharp ideological difference between the media’s perspective and Prabowo’s government policies.

He noted that Prabowo’s current economic policies focus on self-reliance and equity, leading to government initiatives that are decidedly pro-people.

“Programmes such as Free Nutritious Meals, Kopdes Merah Putih, Food Security, and Danantara are intended to enable Indonesia to be self-reliant without depending on any other nation,” Surya stated on Monday, 25 May 2026.

Conversely, The Economist views the government as over-intervening in the economy due to these pro-people programmes. For them, economic efficiency would be achieved if all aspects of societal life were left to market mechanisms.

“The free market economic ideology endorsed by The Economist essentially advocates for all economic activities to be handed over to market mechanisms without government intervention,” he said.

Surya added that The Economist has been vocal in criticising programmes inconsistent with free market ideology, stressing that this approach contradicts the economic principles adopted by Indonesia’s Founding Fathers.

“The economic model implemented by our Founding Fathers holds that factors of production affecting the public’s welfare fall under state responsibility. Conversely, The Economist considers such state responsibility as intervention,” Surya said.

However, Surya warned that implementing a free market system in Indonesia would open the door to neo-colonial economic domination by imperialist nations. Without state protection, he said, UMKM and farmers would be overwhelmed by large capital.

“Imperialist nations with vast capital would easily dominate Indonesia’s market if the free market economic model desired by The Economist were implemented here,” Surya said.