President Questions 35 Per Cent Economic Growth, But the Middle Class Is Shrinking

The President of the Republic of Indonesia has questioned the national economic condition, which does not align with the growth figures recorded in recent years. He said Indonesia’s economy has grown by around 35 per cent over the past seven years, yet the middle class has declined and the poverty rate has risen.

“Friends, I address this Honourable House; I ask all political parties, all mass organisations, I ask all experts and all professors: how can growth of 35 per cent coincide with a shrinking middle class and rising poverty?” said President Prabowo at the DPR building in Senayan, Central Jakarta, on Wednesday 20 May 2026.

The President assessed that this condition indicates systemic problems in the management of the national economy. He revealed that for decades there has been an outward flow of national wealth through practices such as under-invoicing, transfer pricing, and smuggling, which have caused substantial losses to the state.

“We must dare to say what is red, red, and what is white, white. We must tell it as it is. We must reform our government institutions,” Mr Prabowo said.

On this occasion, President Prabowo also highlighted that the pricing of Indonesia’s strategic commodities remains dependent on other countries. He stressed that Indonesia must have sovereignty in setting prices for palm oil, nickel, gold, and other mining outputs.

“I do not want our palm oil to be priced by other nations. We will determine our own prices,” said Prabowo.