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-centred economy and a family-based economy.

According to him, the experience of the past three decades shows that the neoliberal economic approach has failed to bring welfare to the majority of the people.

In his speech at the peak of the 79th Cooperative Day commemoration in Jakarta on Sunday (12 July), Prabowo said the direction of national development over the past 30 years or so has been too heavily influenced by neoliberal economic thought, which he considers contrary to the mandate of the 1945 Constitution.

“Over these last 30 years, we have seen the Indonesian economy dominated by neoliberal economic thinking, which in truth contradicts the 1945 Constitution,” said Prabowo.

He stressed that the struggle to restore the direction of economic development is not intended to seek scapegoats for past policies. According to him, the nation’s elites at the time genuinely believed that the development model adopted from Western countries could accelerate the welfare of society.

However, after more than three decades, Prabowo judged that this hope has not been borne out. He admitted that he had warned from the outset that neoliberal capitalism would not be able to bring widespread prosperity to the people.

Prabowo considered one of the main weaknesses of neoliberalism to be the belief that wealth concentrated in a small group would eventually flow to the wider population through the trickle-down effect mechanism. In his view, this theory has not been proven in practice.

“The neoliberal creed says, let only 1% be rich. If they are rich, eventually their wealth will trickle down. Trickle down effect. I ask you, do you believe it will actually trickle down?” he said.

He also highlighted that the Western countries long used as reference points have themselves begun abandoning that approach. For this reason, he questioned why certain circles in Indonesia continue to defend the neoliberal paradigm at a time when the government is pursuing policies that strengthen the national interest.

Despite acknowledging the various criticisms and attacks on government policy, Prabowo affirmed that the government will not change course. According to him, strengthening the national economy must continue for the sake of the people and in line 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 first be identified so that the solution genuinely resolves it.

He assured that the government will remain consistent in carrying out a development agenda that sides with the people and strengthens national economic self-reliance.

“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,” Prabowo concluded.