Overview

Several of Prabowo Subianto's cabinet candidates hold affiliations with prominent companies listed on the Indonesia Stock Exchange (IDX), reflecting the intersection between business and government. Notable figures include Erick Thohir (Mahaka Media, Mahaka Radio Integra), Rosan Roeslani (Siloam Hospitals, Saratoga Investama, Bumi Resources), Rachmat Pambudy (Nusantara Sawit Sejahtera), and Widiyanti Putri Wardhana (Teladan Prima Agro). These corporate ties suggest strong private sector influence in Prabowo’s administration. In trade, Indonesia posted a USD 3.3 billion surplus in September 2024, marking the 53rd consecutive surplus, though slightly down from the same period last year. Export growth slowed to 6.4% YoY, reflecting global economic uncertainties and weaker demand from China. Imports rose by 8.6% YoY, driven by infrastructure projects and domestic consumption. Bank Indonesia is expected to maintain its 6% policy rate on October 16 to stabilize the rupiah, despite falling inflation. Meanwhile, Indonesia’s foreign debt rose to USD 425.1 billion, prompting a Rp 22 trillion bond auction to manage budgetary needs and sustain growth. The energy sector saw regulatory reforms, with 140 oil and gas permit reductions aimed at spurring investment. However, PT Freeport Indonesia’s smelter in Gresik halted operations following a fire, raising concerns over industrial risks. On the renewable front, PLN seeks 60% private sector involvement to meet energy transition targets, while Pertamina pursues CCUS technology partnerships. The political transition under Prabowo Subianto is progressing smoothly, with efforts to build a broad coalition and maintain policy continuity. Sri Mulyani’s likely reappointment as Finance Minister has boosted market confidence, underscoring the administration’s focus on economic stability.