Indonesian President Prabowo Subianto said economic growth could reach 6% this year, as investors await greater clarity on his economic policies and plans to centralise exports of key commodities.
Speaking in his annual state of the nation address on Friday, Prabowo acknowledged that Indonesia still faced problems but said his administration had begun addressing them. He also said investment would continue to grow and create jobs.
The address came amid growing investor scepticism over his economic agenda, including concerns over government spending, central bank independence and a weakening rupiah and stock market.
Prabowo said Indonesia was pursuing greater self-sufficiency amid global supply chain disruptions, highlighting progress in securing domestic supplies of eight food commodities. He also pointed to tighter controls on sectors including illegal tin mining and efforts to improve revenues from state-owned companies.
Investors are particularly focused on his 2027 budget proposal and the precise role of Danantara Sumberdaya Indonesia, the state-run entity intended to oversee exports of critical natural resources.
Yose Rizal Damuri, executive director of the Center for Strategic and International Studies, said investors would be looking for greater clarity on the entity’s role.
A palm oil analyst at a global agriculture trading house also said commodities traders would be watching closely for further details on the plan.
Prabowo’s address comes ahead of a separate speech later on Friday outlining next year’s budget, which is expected to provide an important signal on the government’s fiscal direction.
