Indonesian Political, Business & Finance News

National Economic Foundations Growing Stronger, Says DEN Member

| Source: ANTARA_ID Translated from Indonesian | Economy
National Economic Foundations Growing Stronger, Says DEN Member
Image: ANTARA_ID

Jakarta (ANTARA) – National Economic Council (DEN) member Mochammad Firman Hidayat said the foundations of the national economy had grown stronger during the first two years of President Prabowo Subianto and Vice-President Gibran Rakabuming Raka’s administration.

“Indonesia has been able to maintain its economic performance amid global uncertainty, including trade pressures, geopolitical conflicts and climate change,” Mochammad Firman Hidayat said in Jakarta on Thursday.

He said economic resilience and strengthening the energy sector were among the issues considered in an evaluation of the administration’s first two years. He added that ongoing reform and electricity planning were needed to ensure development benefited the public.

“Indonesia’s economy has proved resilient. Growth has remained above 5 per cent, inflation has been kept under control, and several policies, such as downstream processing, have also helped strengthen national economic resilience,” he said.

He cautioned that achieving development targets would require continuous improvements.

“President Prabowo has set ambitious development targets, and many challenges still need to be addressed. Continuous reform must continue,” he said.

In the energy sector, Abra Talattov, head of energy and food at the Institute for Development of Economics and Finance (INDEF), said large-scale solar power plants had the potential to strengthen energy security by using domestic resources and reducing reliance on fossil fuels.

He said such development could also reduce the use of fuel oil for power generation, extend electrification to underdeveloped, frontier and outermost (3T) regions, and provide green electricity for industry.

He said the potential could only be realised if solar power development formed part of a comprehensive transformation of the electricity system, rather than simply adding generating capacity.

Planning, he said, should take account of projected electricity demand, regional power-system conditions, grid readiness and the stages set out in the Electricity Supply Business Plan (RUPTL).

“Stronger transmission and interconnection, grid digitalisation and energy storage are needed to balance solar power generation, which is affected by the weather,” he said.

Meanwhile, Adi Prayitno, executive director of Parameter Politik Indonesia (PPI), presented survey findings on public satisfaction with the Prabowo-Gibran administration.

“When those who are very satisfied and satisfied are combined, the total is 65.4 per cent,” he said.

He said the survey, conducted from 26 September to 6 October 2026, involved 1,200 respondents across 38 provinces. A total of 32.5 per cent said they were dissatisfied, while 2.1 per cent did not know or declined to answer.

As the administration enters its third year, economic stability needs to be matched by improvements in the quality of priority programmes, including Free Nutritious Meals, Sekolah Rakyat, social assistance and healthcare services.

Accurate targeting, accountability and follow-up on public feedback are also important to broaden the benefits of development and maintain public trust in the implementation of government policies.

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