Prabowo Pained by IMF Data, Indonesia Lags Mexico and India

Prabowo Pained by IMF Data, Indonesia Lags Mexico and India

Jakarta – President Prabowo Subianto said he was dismayed by IMF data showing Indonesia’s revenue-to-GDP ratio is the lowest among the G20, with the country even below Malaysia, Cambodia and the Philippines.

“Indonesia as a G20 member, but our government expenditure ratio to GDP is the lowest among G20 countries. Likewise, our revenue ratio to GDP is the lowest among G20 countries,” Prabowo said at the DPR RI plenary meeting on Wednesday, 20 May 2026.

According to the latest data from the International Monetary Fund (IMF), Mexico’s revenue-to-GDP ratio is 25%, India 20%, the Philippines 21%, Cambodia 15%. Indonesia’s revenue-to-GDP ratio is only 11-12%.

According to Prabowo, the low revenue-to-GDP indicates that Indonesia cannot manage the nation’s wealth and economy. Therefore, officials must introspect, be aware and dare to ask why Indonesia’s economic governance cannot be on a par with the Philippines and Mexico.

‘Even now we are below Malaysia, what makes us unable? What is the difference between us and Malaysia, Cambodia, the Philippines?’ added Prabowo.

In his plenary remarks, Prabowo also highlighted the phenomenon of a shrinking middle class and rising poverty in recent years. This occurs amid Indonesia’s economy growing at an average of about 5% for the last seven years.

‘Ladies and gentlemen, seven years times five percent equals 35%; our economy grew by 35%, but the number of poor people rose, from 46.1% to 49.5%—a 3 percentage point increase. The middle class declined, listeners,’ Prabowo said.

Seeing these data, Prabowo said he was shocked and felt a hollow in his chest. ‘It may be painful for us; I received these data a few weeks after becoming President, as if I had been struck in the chest,’ he said.

The poverty and middle-class data led Prabowo to question members of the House and experts. He said he was intrigued by the figures.

‘I ask before this esteemed assembly, I ask all political parties, all mass organisations, all experts and all professors: How can 35% growth occur but the middle class decline? Poverty has risen,’ he said.

From the study by the panel of experts, Prabowo is convinced that the current economic system is not on the right track.

‘Friends, the answers must be scientific; the answers must be mathematical, and in my view the answer is that, most likely—not merely likely, I am sure—the economic system we are running is on a trajectory that is not right,’ he said.

He compared with other countries. He argued that the difference lies in the economic system, and if this system is continued, Indonesia will become a country that finds it hard to prosper.

‘Perhaps the difference between us and countries such as Mexico, India, the Philippines and others is systemic. We must look at the facts, the facts that if we continue as we have for a number of years, I am sure we will not become a prosperous nation,’ Prabowo said.