Indonesia is set for a major economic shift, driven by newly-inaugurated President Prabowo Subianto’s ambitious plans. With a goal of 8% GDP growth, Prabowo aims to make the economy more business-friendly and position Indonesia as a key player globally. Let’s dive into how his strategies could reshape the country’s economic landscape.
Expansive Cabinet for Economic Growth
A key part of Prabowo’s strategy is forming a strong and diverse cabinet. This team of experienced professionals from various sectors is designed to speed up decision-making and ensure effective governance. By boosting collaboration across sectors, Prabowo aims to streamline crisis response and promote sustained growth.
In a notable move, Prabowo has appointed seven special presidential envoys. Some of them are to focus on critical areas like:
– Economics and banking
– Micro, Small, and Medium Enterprises (MSMEs)
– Creative economy
– International trade and multilateral cooperation
By addressing these areas, Prabowo’s administration aims to foster public-private partnerships and enhance Indonesia’s economic resilience.
Reviving the National Economic Council
Bringing back the National Economic Council is also a big part of Prabowo’s economic game plan. Originally set up in 1999 under President Abdurrahman Wahid, this council is all about tackling economic crises and helping the nation bounce back.
With Luhut Binsar Panjaitan at the helm, the council will develop strategies to steer Indonesia through economic challenges and make sure the country can adapt to global market changes. This move shows Indonesia’s readiness to tackle both local economic issues and the pressures of globalization.
Prabowo’s First 100-Day Plan
President Prabowo Subianto has laid out an ambitious 100-day plan aimed at jumpstarting Indonesia’s economy, paving the way for sustained growth which focus on:
• Achieving energy self-sufficiency
• Attaining food security
• Creating new job opportunities
• Increasing investment for economic growth
• Reducing the Gini ratio to tackle income inequality
• Cutting poverty rates to improve living standards
Coordinating Minister for Economic Affairs, Airlangga Hartarto, also stressed the urgency of reviving the country’s purchasing power within the first 100 days, as consumer spending is crucial to achieving strong economic growth.
Remove Bureaucratic Hurdles
Although Prabowo is widely known for his military career, he actually comes from an entrepreneurial family. Since 2001, he has owned PT. Nusantara Energy, a company involved in mining, coal, and plantations. His economic vision reflects a strong pro-business stance, which is why his plans are seen as more inclusive.
One of Prabowo’s biggest reforms is the introduction of the “positive fictive mechanism” for business licensing. This policy means that if the government doesn’t respond to a business license application within a set period, the license is automatically approved.
This streamlined approach removes bureaucratic hurdles for investors and entrepreneurs entering the Indonesian market. Additionally, Prabowo’s government plans to lower taxes significantly, with a 16% cut in property taxes and a reduction in corporate taxes from 22% to 20%, encouraging investment and making homeownership more affordable.
A More Competitive Indonesia
In short, Prabowo Subianto’s vision is clear: to drive economic recovery, create a business-friendly environment that attracts both local and global investors, and boost Indonesia’s competitiveness on the world stage.
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