Indonesia’s new chapter, under President Prabowo Subianto’s leadership until 2029, is
setting up its policy vision and strategies to manifest his ambitious 8% economic growth
target. The 48-minister cabinet is postured around the ruling party’s coalition and some
outsiders. With the completion of general and regional elections this year, the national focus
will be reoriented to policymaking as soon as reorganization and strategic policy documents
are finalized.
While continuity was a hallmark of the recent campaign rhetoric, businesses should
anticipate new opportunities and challenges arising over the next five years. Some legacy
projects are slated to continue, such as developments of capital city relocation, connectivity
infrastructures, food estate, and health system resilience. At the same time, President
Prabowo introduces his own fresh flagship initiatives, including the free meal program and
downstreaming initiatives across eight sectors, where the government is proactively
engaging private stakeholders for participation and investment.
The key determinants in manifesting President Prabowo’s vision is attributed to the new
cabinet structures among others. The reorganization of government institutions – from
expansion, downsizing, restructuring, nomenclature amendments, to complete dissolution –
will inevitably impact the executive branch’s effectiveness in policy delivery. Yet, forecasting
their organizational capabilities must wait until the ongoing redistribution of bureaucratic
talents across ministries (e.g., in the digital, infrastructure, and foreign affairs ministries).
Similarly, the House of Representatives (DPR) saw two additional commissions, making the
2024-2029 DPR’s lineup of 580 parliamentarians spread across 13 commissions. Out of the
total 176 over the five years, 41 bills will be prioritized for the 2025 national legislation
program (prolegnas). While some of these bills are not entirely new (e.g., the renewable
energy, tourism, and aerospace management bills), the new parliamentary posture creates
room for renewed dynamics around the political appetite, points of interest, and engagement
opportunities around the bills.
Join us for an exclusive political briefing with Mandala Consulting as part of your EU-ABC
Business Mission to Indonesia. You will receive a comprehensive and nuanced overview of
Indonesia’s current political and policy landscapes at the national and sectoral levels. This
briefing will illuminate how these trends impact European business activities in Indonesia,
and equip you to manage political risks and getting ahead of upcoming opportunities in
Indonesia.
KINDLY NOTE THIS IS AN EU-ABC MEMBERS’-EXCLUSIVE EVENT.