Photo from Facebook: Prabowo Subianto
Indonesian President launches anti-corruption campaign, plans 30-year investigation into state-owned enterprises, and aims for 6% economic growth amid pressure from a stock market that has plummeted by about 27%.
On August 14, 2569, at 13.47:XNUMX a.m., Bloomberg News reported that Indonesian President Prabowo Subianto announced a crackdown on corruption and waste in the public sector. The investigation targets the civil service, state enterprises, police, and military, signaling a review of state enterprise executives going back 30 years, amidst growing concerns among investors and the public regarding the government's economic policies.
In his annual State of the Nation address to parliament on Friday (August 14), Prabowo delivered his second address since taking office, emphasizing his goals of ensuring Indonesian citizens benefit more from the country's resources, along with securing food and energy security and addressing vested interests that hinder government policy.
"I cannot yet say that all of the country's problems have been solved, or that all the promises I have made have been fulfilled. No, we have only just begun." Prabowo said.
In his nearly two-hour speech, Prabowo criticized Indonesia's bureaucratic system as complex and confusing, and blamed self-serving officials as one of the country's major problems.
One of the key issues. คือ Prabowo signaled a call for an investigation into state enterprise executives going back 30 years. They stated that many state-owned companies operate without adequate accountability and oversight.
He also proposed the idea of establishing a special court to conduct investigations, and left open the possibility of granting amnesty to those who show remorse and admit their wrongdoing.
However, Indonesian Law Minister Supratman Andi Aktas later stated that there are currently no plans to establish such a court.
Prabowo also targeted the military and police, questioning how security officials could not have known about as many as 1,000 illegal mines operating in the country.
"A good commander is one who dares to punish their subordinates." The former special forces commander said... And reiterate that His decision had to be based primarily on the interests of the Indonesian people.
Nearly two years after taking office, 74-year-old Prabowo has steadily increased the government's role in managing Southeast Asia's largest economy.
The government has seized control of millions of hectares of land and mining assets over allegations of misuse, while simultaneously placing numerous state-owned enterprises under the management of Danantara, the national sovereign wealth fund established by Prabowo, and creating new entities to manage the export of certain key commodities.
Prabowo praised Danantara's role in consolidating and restructuring state-owned enterprises, as well as reducing the leakage of revenue from commodity exports.
He also clarified that the new export agency is not aimed at monopolizing trade, but rather at monitoring the actual quantities of goods exported and received to prevent tax evasion and underdeclaration of product prices.
The Indonesian economy continues to show strong signs in several areas, with GDP expanding by 5.45% in the first half of the year, driven by exports and household consumption, even though consumer spending has begun to slow down.
Poverty rates have decreased, direct investment remains strong, and inflation remains under control, while Indonesia's fuel prices are among the lowest in the region, despite the shock to global oil prices from the Iran-Iran conflict.
However, investors, economists, and credit rating agencies are beginning to question government policy and spending, as the budget deficit approaches its legal ceiling.
The rupiah is near all-time lows, while Indonesia's bond market has outperformed Asia this year and stock markets have fallen about 27% since the beginning of the year.
Prabowo's popularity has also declined, with a recent poll showing his Approval Rating falling to 51% from over 80% in November, amid concerns about the economic situation and key government policies, including the controversial multi-billion dollar free food program.
Prabowo also used the platform to highlight Indonesia's free food program and food security policies, stating that the country is already self-reliant on several commodities and aims to achieve self-sufficiency in beef in the coming years.
He also praised the new biodiesel policy that leverages the country's large palm oil production base, and expressed optimism that Indonesia's economy could grow by 6% by the end of this year, a level not seen in over a decade.
however Bank Danamon Indonesia I think that While strong investment is supporting the economy, sustaining 6% growth requires that investment be converted into higher productivity, employment, and household income, especially at a time when household consumption indicators remain cautious.
side Wijayanto Samirin, an economist from Paramadina University. I think that The speech was disappointing because it failed to emphasize the independence of the Indonesian central bank following the change in leadership, nor did it give sufficient importance to the role of the private sector and improving the investment climate.
The latest announcement of a crackdown on corruption comes at a critical juncture for the Prabowo government, which must balance increasing the government's role in driving the economy with maintaining investor confidence amidst growing budgetary, currency, and capital market pressures.
refer : www.bloomberg.com
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