Danantara Fund as Job-Creation Engine
In his inaugural state address since taking office in October, President Prabowo Subianto ansive asset portfolio of over $1 trillion, will play a pivotal role in creating millions of “quality jobs” by accelerating investment in strategic sectors. The president specifically highlighted the downstream industrialization of mineral and mining products as a key focus area, explaining that this initiative will substantially increase the added value of the country’s exports and make a major contribution to the national economy. This strategic move, which was developed in collaboration with the House of Representatives, is aimed at not only attracting foreign capital but also at fostering sustainable, long-term growth by leveraging Indonesia’s rich natural resources.nounced that Indonesia’s newly established sovereign wealth fund, Danantara, will serve as a powerful engine for economic transformation. He stated that the fund, which manages a mas
Widespread Initiatives and Economic Achievements
Beyond the new sovereign wealth fund, President Prabowo detailed several other key initiatives and positive economic indicators from his administration’s first year. He announced the launch of 80,000 Merah Putih Cooperatives across the country, which are designed to strengthen rural economies by supporting small-scale farmers and fishermen. These cooperatives will also ensure the subsidized supply of essential goods like rice and cooking oil, helping to provide stability for local communities. The president also highlighted Indonesia’s robust economic performance in the face of global challenges, citing a 13.6% surge in investment in the first half of 2025, which has directly led to the creation of 1.2 million new jobs. Furthermore, he noted that Indonesia’s economy grew a solid 5.12% in the second quarter and that unemployment has reached its lowest level since the 1998 Asian financial crisis.
Fiscal Responsibility and a Confident Outlook
The president’s address also emphasized his administration’s strong commitment to fiscal responsibility and anti-corruption measures. He claimed that his government has successfully saved Rp 300 trillion in state funds by eliminating wasteful spending and cracking down on corruption. According to Prabowo, these austerity measures, which include a reduction in non-essential trips and meetings, have freed up “hundreds of trillions of rupiah” to be re-allocated to more urgent and productive public spending. This focus on financial discipline provides a strong foundation for the government’s ambitious economic plans. The president concluded his speech with an optimistic outlook, noting that despite global economic and geopolitical tensions, several economists have expressed confidence that Indonesia’s growth trajectory will continue to accelerate in the years to come, affirming his administration’s strategic path forward.
