Prabowo: A Middle Way Economy Suits Indonesia, Embracing Socialist-Capitalist Elements

Prabowo: A Middle Way Economy Suits Indonesia, Embracing Socialist-Capitalist Elements

Jakarta, CNBC Indonesia — President Prabowo Subianto has stated that the economic model best suited for Indonesia is the Middle Way Economy. He said this model takes the best from socialist and capitalist economic systems.

‘We must build an Indonesia incorporated, a family-like economy where everyone collaborates. The strong should advance and attract the weak. The weak should unite to build joint enterprises for cooperatives. The rich cannot prosper at the expense of the weak,’ he told the Parliamentary Plenary of the DPR at the MPR/DPR building in Senayan, Jakarta, on Wednesday, 20 May 2026.

‘Indeed, the economy that suits Indonesia is a middle way economy – a bold economy that takes the best from socialism and the best from capitalism,’ he said.

With such an economic model, Prabowo argued, the role of the state is essential to ensure justice and equity.

‘We need a state’s role, we need state protection, we need oversight, and we need the state’s alignment to guarantee justice and equity,’ he added.

Moreover, the model does not prohibit taking the best from market mechanisms to the free market.

‘But we also need the best from market mechanisms, and the best from the free market,’ he explained.