Indonesia’s GDP Grows Yet Household Incomes Remain Stagnant Under Prabowo
Two years into Prabowo Subianto’s presidency, Indonesia’s economy posted solid growth, but many citizens still struggle to find better-paid jobs.
Indonesia’s economy has shown resilience under President Prabowo Subianto, with GDP expanding 5.11% in 2025 and 5.45% in the first half of one outlet year, well above the 5% average since 2013. Economist Intelligence Unit analyst Qi Hang Tay praised the performance given external challenges, but cautioned that the gains stem mainly from continued macro-economic trends rather than new structural reforms. The growth has not translated into stronger household incomes; many Indonesians report difficulty securing well-paid positions, especially in the formal sector, and wage growth is falling short of expectations.
Meanwhile, the rupiah has depreciated and the stock market has suffered a dramatic decline, reflecting reduced investor confidence. Ongoing global turbulence, including U.S. tariff threats and the Iran war’s effect on oil prices, continues to pressure the economy.
Why it matters
It highlights the disconnect between national economic growth and everyday financial wellbeing for Indonesians.
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