Prabowo defends food security push as investor doubts grow
Prabowo's Independence Day speech defends food self-sufficiency, acknowledges challenges, as investors await budget clarity.
Indonesian President Prabowo Subianto used his Independence Day address on Friday to defend his food self-sufficiency drive, saying the country's supply of eight staple commodities is secure even as extreme weather looms. He acknowledged that not all national problems have been solved, but insisted that efforts to address them are beginning to show results.
Speaking to parliament, Prabowo said Indonesia must be able to stand on its own feet amid global supply chain disruptions, rather than depend on external sources. His administration has made cutting import reliance a core priority, focusing on boosting output of rice and other staples for the country's 290 million people.
However, the speech comes at a delicate moment. Prabowo's approval ratings have slipped, and investors are increasingly wary of his plans to centralise exports of key commodities and pursue ambitious spending programmes. The rupiah has weakened, the stock market has underperformed, and there are concerns about government overspending and the independence of the central bank.
His flagship free meals programme for children has also faced budget cuts and allegations of mismanagement. Environmentalists, meanwhile, have warned that the food self-sufficiency push contributed to a surge in forest loss last year.
Later on Friday, Prabowo is set to present next year's budget, which economists view as a critical credibility checkpoint. Traders and investors are looking for clarity on the commodity export plan and the government's overall fiscal direction.