Prabowo Rejects Neoliberalism

President Prabowo Subianto has stated that the government will return the direction of Indonesia’s economic development to the ideals of the nation’s founders by prioritising a people’s economy and a family-based economy. According to him, the experience of the last three decades shows that the neoliberal economic approach has not been able to bring prosperity to the majority of the people. In his speech at the peak of the 79th Cooperative Day commemoration in Jakarta, Sunday (12/7), Prabowo said the direction of national development over the past 30 years has been too influenced by neoliberal economic ideology, which he considers contrary to the mandate of the 1945 Constitution. “In the last 30 years, we have seen the Indonesian economy dominated by neoliberal ideology, which is actually contrary to the 1945 Constitution,” said Prabowo. He stressed that the struggle to restore the direction of economic development is not aimed at finding a scapegoat for past policies. According to him, the nation’s elites at that time also believed that the development model adopted from Western countries could accelerate public welfare. However, after more than three decades, Prabowo assessed that this hope has not materialised. He admitted that from the beginning he had warned that neoliberal capitalism would not be able to bring widespread prosperity to the people. Prabowo assessed that one of the main weaknesses of neoliberalism is the belief that wealth concentrated in a small group will eventually flow to the wider community through the trickle-down effect mechanism. According to him, this theory has not been proven in practice. “That neoliberal ideology says, let the 1% be rich. If they are rich, eventually their wealth will trickle down. Trickle down effect. I ask you, do you believe it will trickle down?” he said. He also highlighted that Western countries, which have been the reference, are actually starting to abandon this approach. Therefore, he questioned why there are still circles in Indonesia who maintain the neoliberal paradigm when the government is trying to implement policies that strengthen national interests. Although acknowledging various criticisms and attacks on the government’s policies, Prabowo stressed that the government will not change direction. According to him, strengthening the national economy must continue for the sake of the people and in accordance with the ideals of the nation’s founders. Prabowo likened the change in economic policy direction to treating an illness. According to him, the root of the problem must be identified first so that the solution provided truly resolves the issue. He ensured the government will consistently carry out a development agenda that sides with the people and strengthens national economic independence. “We are on the path of our nation’s founders. We are on the straight path. Defending the people is an honour for the Indonesian nation. Defending the people is an honour for every patriot. I will not hesitate, I will continue to defend and strengthen the Indonesian nation and the Indonesian people,” concluded Prabowo.