Prabowo’s Economic Goals: Expanding Domestic Industry and Limiting Exports

Indonesia’s economic future is a topic of significant importance under the leadership of President Prabowo Subianto. With his strong background in defense and leadership, Prabowo has crafted a set of economic policies aimed at enhancing the country’s self-sufficiency, expanding domestic industries, and strategically limiting exports of raw materials. His vision centers on fostering a robust domestic economy that can withstand global volatility while creating a sustainable growth model for Indonesia. This focus on expanding domestic industries and curbing raw material exports represents a critical shift towards economic independence and long-term prosperity.

At the heart of Prabowo’s economic goals is the vision of a self-sufficient Indonesia. The idea is to reduce Indonesia’s reliance on foreign imports and raw material exports, thereby securing the nation’s economic autonomy. As one of the world’s largest producers of natural resources such as coal, palm oil, and natural gas, Indonesia has long relied on the export of these raw materials. However, Prabowo believes that this model has limited Indonesia’s potential to build a more diversified and resilient economy. By focusing on expanding domestic industries, he seeks to move away from the dependency on raw material exports and add value to Indonesia’s resources within the country itself.

One of the key strategies is to promote the development of manufacturing sectors, which can process raw materials locally, instead of exporting them unprocessed. This would not only boost Indonesia’s industrial capacity but also create jobs, drive technological innovation, and increase Indonesia’s competitiveness on the global stage. By supporting sectors such as automotive, electronics, food processing, and petrochemicals, Prabowo’s administration aims to stimulate long-term economic growth that is less susceptible to the fluctuations of global commodity prices.

Prabowo recognizes the importance of economic diversification, particularly in the context of global economic uncertainty. While Indonesia’s natural resources have driven economic growth for decades, the dependence on the extraction and export of raw materials has left the country vulnerable to external shocks, such as price swings in global markets. By expanding domestic industries and moving away from an export-led growth model, Prabowo seeks to create a more balanced and sustainable economy.

Under his leadership, the government has set ambitious goals for the development of key sectors, particularly in manufacturing and technology. For instance, the automotive industry is one area where Indonesia has the potential to become a regional leader. With its large domestic market and growing middle class, Indonesia offers significant opportunities for the expansion of manufacturing and assembly plants for both domestic consumption and regional exports. Prabowo’s administration has prioritized attracting investments in this sector, offering incentives for companies to set up production facilities and create high-quality jobs.

Similarly, Indonesia’s growing digital economy is another area where Prabowo sees vast potential for expansion. By focusing on local innovation and the development of technology startups, the government hopes to position Indonesia as a leader in Southeast Asia’s digital transformation. This includes initiatives to boost digital infrastructure, promote e-commerce, and invest in fintech and other emerging industries. By developing its technological capabilities, Indonesia can reduce its reliance on imported tech products and services while creating a competitive edge in the global market.

Prabowo’s economic vision also includes the strategic reduction of raw material exports, aiming instead to keep valuable resources within Indonesia’s borders for further processing and value addition. This policy seeks to ensure that Indonesia gains more value from its abundant natural resources, rather than merely exporting them as raw commodities and allowing other countries to profit from their processing.

The export of unprocessed raw materials has long been a point of contention for many Indonesian leaders, as it has prevented the country from realizing the full economic benefits of its resources. For instance, the Indonesian government has been actively working to limit the export of raw minerals, such as nickel and bauxite, by requiring that these materials be processed domestically. This move encourages investment in smelters and manufacturing plants, providing employment opportunities and fostering the development of related industries, such as logistics, chemicals, and construction.

In the mining sector, for example, Prabowo’s government has enforced policies that require foreign companies to partner with local firms and build processing facilities in Indonesia. These measures are designed to ensure that Indonesia not only retains more value from its minerals but also develops the technical expertise and infrastructure needed to support a sustainable mining industry.

Similarly, in the palm oil industry, which is one of Indonesia’s major exports, the government has taken steps to encourage the development of downstream industries, such as biofuels and food products. By focusing on processing these commodities locally, Indonesia can increase the value added to its palm oil exports and create more jobs in the sector.

To achieve these ambitious economic goals, Prabowo’s administration is also placing a heavy emphasis on infrastructure development. Infrastructure plays a crucial role in supporting domestic industries, improving supply chains, and facilitating the movement of goods within Indonesia’s vast archipelago. The government has committed to improving transportation networks, upgrading ports, expanding electricity grids, and enhancing digital infrastructure.

For instance, the construction of new roads and railways is designed to improve the connectivity between production centers and markets across the country. Additionally, the expansion of ports is expected to help facilitate the movement of manufactured goods for both domestic consumption and export. With better infrastructure, domestic industries will be able to operate more efficiently, reducing costs and improving their competitiveness both regionally and globally.

In the digital realm, Prabowo’s government is investing in increasing internet access across Indonesia, especially in rural and remote areas. This move is intended to bridge the digital divide and provide local businesses with the tools they need to grow in the digital economy. By strengthening Indonesia’s digital infrastructure, the government is ensuring that local industries can participate in global e-commerce, digital finance, and technology innovation.

While Prabowo’s focus is on expanding domestic industry, he also recognizes the importance of foreign investment in driving economic growth. To achieve his economic goals, Prabowo has sought to create a more attractive environment for foreign investors, particularly in high-value sectors such as manufacturing, technology, and green energy. The government has introduced a range of incentives, including tax breaks, investment guarantees, and simplified regulations, to encourage foreign businesses to set up operations in Indonesia.

At the same time, Prabowo’s administration is fostering local innovation and entrepreneurship. By supporting startups and small businesses through access to funding, training, and networks, the government is helping to nurture Indonesia’s next generation of entrepreneurs and innovators. This dual approach—encouraging both foreign investment and local innovation—is crucial for the long-term success of Indonesia’s industrial expansion.

Prabowo’s economic goals are designed to transform Indonesia into a more self-sufficient, diversified, and resilient economy. By focusing on expanding domestic industries and limiting exports of raw materials, he aims to reduce the country’s dependency on external factors and create a more balanced, sustainable growth model. Through strategic investments in infrastructure, technology, and local innovation, Prabowo administration is building a strong foundation for a prosperous future.

As Indonesia navigates the complexities of the global economy, Prabowo’s economic policies provide a roadmap for the nation to harness its potential, protect its resources, and create a more inclusive and equitable society. His vision for an Indonesia that can stand on its own economically is a bold and necessary step toward ensuring the country’s long-term prosperity and global competitiveness.