Indonesia's Economy Struggles Under Two Years of Prabowo-Gibran Leadership

Marking the 24-month anniversary of President Prabowo Subianto and Vice President Gibran Rakabuming Raka’s tenure, a detailed analysis examines Indonesia’s economic performance. Interviews range from Ratih Widihabsari, a bakery owner in Tembalang, who absorbs rising egg and meat costs, to Bhima Yudhistira of Celios, who reports that 53 % of respondents feel their household budgets have deteriorated. Labor leader Elly Rosita Silaban describes a wave of manufacturing layoffs, while economist Syafruddin Karimi notes that the decline in unemployment largely reflects a shift into low-wage informal jobs.

Finance Ministry spokesperson Suahasil Nazara and Coordinating Ministry secretary Susiwijono Moegiarso explain that each US$1 increase in crude oil prices creates a roughly Rp6 trillion deficit, risking a breach of the 3 % of GDP limit. Researchers warn that without tightening, the budget gap could rise to 3.1 % of GDP, yet political constraints make fuel-price reforms difficult.