Prabowo Pushes State-Led Resource Retention to Lift Indonesia Growth to 8%

4 articles · Updated · Bloomberg · May 22

Prabowo Subianto is recasting Indonesia’s economic model around a bigger state role and tighter control over commodity profits, aiming to raise annual growth to 8% from roughly 5% over the past decade.
The strategy centers on keeping more value from Indonesia’s natural resources at home rather than letting profits flow abroad, with the proceeds intended to fund social programs and broader domestic development.
Prabowo argues that approach will help Southeast Asia’s biggest economy avoid the middle-income trap, but his export-control push is unsettling markets worried about heavier intervention and policy risk.

With markets spooked and investors rattled, can Indonesia's high-risk gamble actually deliver its promised 8% growth?

Will Prabowo's resource nationalism uplift citizens or simply create a new, powerful state-backed oligarchy?