Indonesian Political, Business & Finance News

Prabowo Criticises Economic Anomaly: 5% Growth Yet Poverty Rises

| | Source: MEDIA_INDONESIA Translated from Indonesian | Economy
Prabowo Criticises Economic Anomaly: 5% Growth Yet Poverty Rises
Image: MEDIA_INDONESIA

President Prabowo Subianto has assessed that the national economic growth, which remains stable at around 5 per cent per annum, has not automatically improved the welfare of the people. He described this condition as an anomaly, particularly as the number of impoverished citizens increases and the middle class weakens.

Prabowo made these remarks during his closing speech at the 2026 National Consultative Assembly of Nahdlatul Ulama Ulama Clerics in Bangkalan Regency, East Java, on Tuesday. According to Prabowo, by simple calculation, a 5 per cent annual economic growth over seven years should have made Indonesia significantly more prosperous.

“Over the last seven years, it has been stated that our economy grows by 5% each year. Seven years multiplied by five equals 35% growth. Logically, over seven years, Indonesia should be 35% wealthier,” Prabowo said, as reported by Antara.

However, the President noted that social reality does not fully reflect these growth achievements. He highlighted that the impoverished population is increasing, while certain segments of the middle class are experiencing economic decline.

“The reality is that after seven years of 5% growth, the number of poor people has increased. The state gets richer, but the poor increase. This is something strange, an anomaly. The middle class, which had previously escaped poverty, is now declining,” he stated.

Prabowo assessed that this situation indicates fundamental issues within the national economic system. He argued that economic growth has not been distributed fairly across all layers of society. He added that if poverty rises and the middle class shrinks amidst economic growth, the benefits of that growth must be questioned.

“We can see that this means our system is flawed. This system is flawed because if the poor increase and the middle class decreases, it means only a handful of people are enjoying this growth,” said Prabowo.

The Head of State emphasised that economic development must not stop at growth figures. He stated that the government must ensure that growth is capable of expanding welfare, reducing poverty, and delivering social justice.

Prabowo declared that his administration will reform various policies so that the results of development can be felt more evenly by the people. He noted that the aspiration of Indonesia’s independence is to provide social justice and prosperity for all citizens, not just for specific groups.

“This is what I believe in and what I will work on, to fulfil my oath to the people to protect the interests of the people, in accordance with the oath I took when I was inaugurated,” the President concluded.

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