Not Too Old for Great Again
Around 2 hours from now, every 10am [local time / Jakarta / GMT+7], August 17th this year, Indonesia celebrates the 80th anniversary of Proklamasi (the proclamation of independence) after more than three centuries as the Dutch East Indies, colloquially Tujuhbelasan (the 17th).
In his first State of the Union address on Friday, President Prabowo Subianto’s nationalistic approach to the country’s economic development became clear, advocating state-owned enterprise while lashing out against the global trend of “my country first” rhetoric amid rising protectionism.
As in his previous public speaking, he underlined that the country’s economic philosophy is largely rooted in Article 33 of the 1945 Constitution, which mandates state control over vital sectors of the economy for the benefit of the people.
His tough talk of economic nationalism included a polemic against "greednomics", a term he used to describe the exploitative practices of powerful conglomerates and "mafias" in key sectors like palm oil, mining and rice. He argued these groups manipulate markets for personal gain, and he vowed to use state power to combat them. He also criticized the "net outflow of national wealth" and warned that it could turn Indonesia into a failed state. “If we continue to allow our wealth to flow out of the country, we are at risk of becoming a failed state.
Therefore, I am obligated to take necessary steps, even if they are difficult and unpopular with certain parties. I must take action to save the nation’s wealth so it can be used for the benefit of our country, both now and in the future, for the sake of the current and next generations,” he said. While Prabowo's rhetoric is strongly nationalistic, it is safe to say that his policies also contain elements of populism and state-led development, as evident in his advocacy for a more active role for state-owned enterprises (SOEs) in key industries and his strong focus on social welfare programs.
This approach is not necessarily a rejection of all international engagement, but rather an attempt to balance it with a strong domestic focus. For instance, he recently finalized the long-overdue comprehensive partnership agreement with the European Union and is continuing efforts to join the Organization for Economic Co-operation and Development (OECD). In his 70-minute speech, 30 minutes longer than scheduled, Prabowo cast himself as a strong warrior with the power to defeat societal evils and bring prosperity to a fed-up nation.
He boasted of launching a war against rice hoarders and graft, and claimed his programs, such as free nutritious meals for children and pregnant women, the Red and White cooperatives and food self-sufficiency, were instrumental in reducing unemployment.
The speech felt more like a prelude to the 2026 state budget than a message of current hope for his grassroots audience. He mentioned the word “economy” 31 times, the third most spoken after “state” and “people”. Notably missing from the President’s speech were issues of human rights and freedom of expression. Indonesia has remained in the international spotlight due to a growing number of restrictions on civil liberties.
While the President is a skilled orator, talking tough is not enough. It was jarring that he seemingly ignored the public’s immediate concerns, instead focusing on what he claimed were massive abuses of power by various government agencies.
The President's address presented a long list of his own wishes, creating an impression of being disconnected from the people, waiting urgently for good news from their leader. Furthermore, he largely avoided discussing foreign policy, contrary to the expectations of the diplomatic community.
The President simply underlined that Indonesia would maintain its good neighbor foreign policy and settle all disputes, including border issues, through dialogue. The only individual who received specific praise from the President was Dadan Hindayana, the head of the National Nutrition Agency (BGN), for his team's success in providing nutritious meals to the targeted groups.
The people had expected a detailed report on concrete economic progress and graft eradication since Prabowo took office last October, especially in light of declining purchasing power and rising layoffs. This simple message would keep their hopes for a better life alive. And the penchant for economic nationalism, hence state control, will only add insult to injury.
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