Challenges Mount for Indonesian President Amid Protests and Food Safety Scandals

In his first year, Indonesian President Prabowo Subianto faces backlash over rising living costs, widespread protests, and alarming food poisoning incidents linked to a controversial free meal program for students.

Indonesian President Prabowo Subianto's inaugural year has been marked by significant challenges, including protests against the rising cost of living and health crises stemming from mass food poisonings in a flagship school meal initiative. As more than 9,000 children have fallen ill due to this program, critics raise concerns over governance and public spending amidst growing discontent among the populace. The events highlight broader economic issues facing Southeast Asia's largest economy, where ambitious growth targets clash with realities on the ground.

When Prabowo Subianto campaigned to become Indonesia's new president, he promised dynamic economic growth and major social change. However, his first year in office has not lived up to this populist platform. A frustrated youth, worried about jobs, took to the streets in late August to protest against the rising cost of living, corruption, and inequality. The government was compelled to retract perks for politicians that had sparked public fury, following earlier protests against budget cuts impacting healthcare and education.

These protests coincided with an expensive free school meals program costing $28bn annually to combat child malnutrition. Reports have surfaced showing weak, dehydrated children, some as young as seven, suffering from food poisoning after participating in the program. Critics question the efficacy and sustainability of the initiative while more than 9,000 children have fallen ill since its rollout in January. Analysts point out these challenges underscore deeper issues in public spending and raise alarm over mounting national debt.

Discontent on the Streets

Despite steady growth of approximately 5% in recent years, Indonesia feels the pressure of slowing global demand and rising living costs, particularly as it competes with regional neighbors like Vietnam and Malaysia, which have successfully attracted foreign investments. The protests that erupted in August, resulting in 10 fatalities, highlighted public anger against Prabowo's administration, accused of placing priority on prestige projects rather than urgent economic support.

Amidst these mounting pressures, Prabowo and his ministers maintain that their policies will create jobs and stimulate demand. The Coordinating Minister for Economic Affairs, Airlangga Hartarto, asserted optimism around achieving higher growth connected to strategic economic initiatives.

The Search for Investment

Indonesia's economic landscape is complicating investment drives, especially given tariffs imposed on exports to the U.S. and redirecting of trade by China. Though Airlangga recognizes the competitiveness of the tariff rates with regional rivals, challenges persist with foreign companies citing bureaucratic hurdles diminishing the investment appeal in Indonesia.

Additionally, the abrupt sacking of respected former finance minister Sri Mulyani Indrawati has rattled investor confidence, further adding to the complexities for Prabowo's administration. As President Prabowo navigates these tumultuous waters, the future of his policies remains precarious amidst growing public discontent and calls for action.