Indonesian Political, Business & Finance News

Villages to Become New Economic Growth Centres: Prabowo's Approach

| Source: CNBC Translated from Indonesian | Economy
Villages to Become New Economic Growth Centres: Prabowo's Approach
Image: CNBC

JAKARTA — President Prabowo Subianto has designated villages as a key focus in the national economic agenda. He stressed that economic development must not be concentrated solely in major cities but should create new growth centres at the village level.

The initiative aims to build a more equitable economy, with the government viewing balanced development as essential for ensuring growth benefits reach all societal layers.

‘Our economy is based on the blueprint designed by our nation’s founders—Sukarno, Hatta, Sjahrir and all the founding fathers,’ Prabowo said during the Pancasila Birthday Commemoration Ceremony at the Ministry of Foreign Affairs’ Pancasila Building in Jakarta on Monday, 1 June 2026.

He stated that development based on Article 33 of the 1945 Constitution must empower citizens as economic actors, hence cooperatives are seen as strategic for expanding economic access and improving community welfare across regions.

‘Therefore, cooperatives must be strengthened and revived. Cooperatives are a key tool to lift our people out of poverty and powerlessness,’ Prabowo said.

Besides cooperatives, the micro, small and medium enterprise (MSME) sector is also a major focus. The government recognises MSMEs’ ability to create jobs and drive local economic activity.

‘We must strengthen small and medium enterprises, and villages must become new economic growth centres,’ he added.

With this approach, the government hopes economic activity will no longer rely on a few regions. Instead, villages are expected to become centres of production, distribution, and new value creation.

‘The people must be the main drivers of development, not merely its subjects or mere tools,’ Prabowo said.

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