Prabowo-Gibran’s Economic Equality Policy Encourages Inclusive National Growth
By Ayudia Alif
Economic equality is one of the main agendas of the Prabowo-Gibran government in encouraging inclusive national growth. With an ambitious target of economic growth of 8% in 2025-2029, the government is trying to create policies that not only increase growth rates, but also ensure that economic benefits are felt by all levels of society. This commitment has received appreciation from various parties who consider the government’s steps as a form of sustainability of a more just and equitable development vision.
Deputy Speaker of the Indonesian House of Representatives Coordinator for Economics and Finance, Adies Kadir, appreciated President Prabowo Subianto who has remained consistent since the campaign period until now with an economic growth target of 8% in 2025-2029. He emphasized the importance of synergy between fiscal and monetary policies to remain in line with national economic conditions. According to him, policies must remain flexible, both to encourage economic growth and maintain stability with a combination of expansionary-contractionary approaches. Adies also invited all parties to work hard to realize high economic growth amidst the challenges of a volatile global economy.
The Prabowo-Gibran government also benefits from domestic factors that support economic growth. The President’s Special Advisor for Economic Affairs, Bambang Brodjonegoro, estimates that Indonesia’s economic growth in 2025 will remain above 5%. This is driven by various important moments such as religious holidays and year-end celebrations.
One of the concrete steps taken by the government to support economic growth is structural reform. The Head of the Center for Macroeconomics and Finance of the Institute for Development of Economics and Finance (INDEF), M. Rizal Taufikurahman, stated that there are at least three things that the government can do to support economic growth. First, structural reform to overcome a number of issues that have so far hampered economic growth.
Second, prioritizing policy directions to revive the manufacturing, food, and micro, small and medium enterprises (MSMEs) sectors as the main engines of the economy and the largest providers of employment. Third, improving fiscal health as the main pillar of economic growth. Rizal emphasized that the budget efficiency ordered by President Prabowo could be a radical step to improve the structure of the State Budget (APBN) which has so far been burdened by large bureaucratic spending.
The manufacturing, food, and MSME sectors are the main priorities in the economic equality strategy. These three sectors have a crucial role as the main engine of growth and the largest provider of jobs in Indonesia. The government is committed to providing incentives for the manufacturing industry so that it can increase competitiveness and production expansion. In the food sector, efforts are being made to increase national food security by strengthening agricultural infrastructure and providing easy access to capital for farmers and agribusiness actors.
Meanwhile, MSMEs as the backbone of the national economy receive special attention in the economic equality policy. The government is trying to create an ecosystem that supports the development of MSMEs, both through simplifying regulations, easier access to capital, and utilizing digital technology to increase the competitiveness of small businesses. With policies that favor MSMEs, it is hoped that this sector can grow more rapidly and contribute significantly to national economic growth.
Budget efficiency is another step taken by the Prabowo-Gibran government to support inclusive economic growth. The structure of the State Budget (APBN), which has tended to be burdened by bureaucratic spending, is now directed to focus more on productive sectors. The government is targeting efficiency in managing the state budget so that the allocation of funds can be more optimal in supporting infrastructure, education, and health investments, which are the main pillars of public welfare. In addition, the government is also encouraging investment as the main engine of economic growth. Various pro-investment policies have been prepared to attract more domestic and foreign investment to strategic sectors. Business licensing reform, ease of investment, and fiscal incentives for investors are part of the government’s strategy to increase investment flows into the country. With increased investment, new jobs can be created, and economic growth can take place more evenly.
