Overview

• President Prabowo used his first State of the Nation speech to reaffirm expansive social programmes as the cornerstone of his economic strategy
• He highlighted 5.12 percent Q2 GDP growth and a roughly 5 percent rupiah rally since April as evidence of policy success
• The flagship free-meals scheme now reaches about 20 million schoolchildren and pregnant women but has drawn protests, budget cuts and food-safety complaints
• He vowed to tackle “greednomics” by cracking down on corruption, price-fixing and hoarding while expanding village cooperatives to stabilize food supplies
• Investors are closely watching his 2026 draft budget for clues on deficit targets, social spending priorities and plans to modernize Indonesia’s military