Indonesian Political, Business & Finance News

Prabowo Highlights Indonesian Economy Growing: Yet Poverty Rises and the Middle Class Shrinks

| | Source: KOMPAS Translated from Indonesian | Economy
Prabowo Highlights Indonesian Economy Growing: Yet Poverty Rises and the Middle Class Shrinks
Image: KOMPAS

JAKARTA, KOMPAS.com - President Prabowo Subianto highlighted Indonesia’s economic growth, which has remained above five percent for seven consecutive years. However, the figures clash with what he sees on the ground, as he notes poverty rising and the middle class shrinking. ‘I feel as if I have been struck in the pit of my stomach. Ladies and gentlemen, seven years times five percent, 35 percent of our economy has grown, but the number of people living in poverty has increased,’ Prabowo said during the plenary meeting delivering the Macroeconomic Framework (KEM) and the Outline of Fiscal Policy (PPKF) of the 2027 RAPBN, at the Parliament Complex, Jakarta, Wednesday (20/5/2026). He said Indonesia is a country with abundant wealth and a strategic position on the world trade routes. However, all these advantages have not yet been fully felt by the Indonesian people. He even pointed to Indonesia having the lowest ratio of government expenditure to gross domestic product (GDP) among G20 member countries. ‘We must introspect and be aware and dare to ask, why can’t we manage our economy so that our state’s revenue can be on par with countries such as the Philippines, Mexico? Even now we are still below Malaysia. What causes us to be unable?’ asked Prabowo. To ensure that Indonesia’s wealth is felt by its people, Prabowo stressed that sovereignty must be truly upheld. ‘Truly our natural resources are abundant. We have highly valuable commodities. Our coal, our nickel, our copper, our palm oil, rare earth metals, and abundant marine wealth,’ he added with optimism.

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