Prabowo Hails Strongest Half-Year Growth in 13 Years, Sets 6% Target
President Prabowo Subianto cites decade-best first-half growth and pledges 6% by year-end, but insists welfare, jobs matter more than figures.
President Prabowo Subianto used his annual State of the Nation address on Friday to highlight Indonesia's strongest first-half economic expansion in over a decade, while cautioning that growth alone is not the ultimate measure of national success.
Speaking before Parliament in Jakarta, Prabowo reported that Southeast Asia's largest economy grew 5.61% in the first quarter and 5.45% in the first half of the year — the best such figures in 13 years. He expressed confidence that with "rational policies" and "common sense," full-year growth could reach 6% despite global headwinds.
However, the president was emphatic that economic expansion and investment inflows are means, not ends. "For me, growth and investment are not the final goal. Our goal is the welfare of our people," he said, adding that high growth that fails to benefit the majority is of no use.
Ahead of Indonesia's 81st Independence Day, Prabowo stressed that every rupiah of investment must generate employment and improve access to basic services, especially for lower-income citizens. He cited realized investment of 1,931 trillion rupiah ($108 billion) last year, which created over 2.7 million jobs, and 1,010 trillion rupiah ($56.7 billion) in the first half of this year, adding more than 1.4 million jobs.
He also defended flagship programs, including the Free Nutritious Meals initiative, social assistance schemes, and natural-resource downstreaming policies. "Our promise ... is no longer merely a plan on paper," he said. "It is already underway, and the people are feeling the benefits."
The meals program, which targets nearly 90 million schoolchildren and pregnant women, has faced scrutiny after food-poisoning incidents. On Thursday, around 269 students in North Sumatra's Karo regency reportedly fell ill after consuming meals from the scheme.
Economists have questioned whether official figures reflect ground realities. Nailul Huda of the Center of Economic and Law Studies (Celios) noted that slowing household consumption, rising layoffs, and job-search difficulties suggest growth benefits are not widely shared. "The government always claims the economy is growing strongly, but lower-income communities do not feel it," he said.